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Schneider Electric in talks with Tyco about acquisition?

13.04.2011 - According to Bloomberg, Schneider Electric said it is "not currently" in discussions with Tyco International about a potential strategic transaction between the two companies. The ...

According to Bloomberg, Schneider Electric said it is "not currently" in discussions with Tyco International about a potential strategic transaction between the two companies. The French company responds to "market rumors" that it has been working with bankers to explore a possible bid for the US-based maker of fire security systems, according to three people familiar with the considerations. Schneider made a preliminary bid that valued Tyco at about $30 billion, the Wall Street Journal reported yesterday, citing people familiar with the plans.

At the beginning of this week rumors were spread that Schneider Electric is studying a takeover offer for Tyco International that would make the French company the world's biggest manufacturer of security systems, said three people with knowledge of the matter. Schneider is working with bankers to help assess a potential acquisition of Tyco, said the people, who spoke on condition of anonymity because the matter is private. According to Bloomberg Schneider's efforts are at an early stage and no deal is imminent, the people said. Tyco, based in Schaffhausen, Switzerland, had a market value of $22.3 billion as of April 8.

Buying Tyco would mark Schneider's biggest-ever takeover and would add ADT, the largest security systems firm as well as fire-prevention equipment and valves used in water systems. Schneider has sought to expand in factory automation and building controls, where it trails companies like Siemens and Honeywell. In October 2007 Schneider Electric completed the acquisition of Pelco, giving the building automation and systems company a strong footing in video surveillance security systems. The acquisition saw all the Pelco shares purchased for $1.54 billion.

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Tyco International Ltd.

Freier Platz 10
8200 Schaffhausen
Switzerland

+41 52 633 02 44
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