Schneider Electric back in the spotlight over Tyco buyout rumours
The latest comes from the New York Post. The paper reported earlier this week that Schneider is talking to private equity firms about a bid for Tyco. The Post quoted two unnamed sources, who said that talks are in the early stages and Schneider has yet to choose its partners.
Schneider’s top brass once again denied the rumour, and was quoted in a recent Reuters story that it will not pursue any large acquisitions “for the foreseeable future.”
These rumours first surfaced a month ago, with the Wall Street Journal reporting that the company has its sights set on Tyco International with a $30 billion bid already in play. Schneider denied that any talks had taken place, and issued a statement on its website on April 13 that “it is not currently in discussion with Tyco International regarding a potential strategic transaction between the two companies.”
Meanwhile, Tyco is pursuing acquisitions of its own. Reuters, reporting from a an industry conference, quoted Tyco CEO Ed Breen as saying that the company plans to spend US$500 to $600 million on “bolt-in acquisitions” over the next year and that the company is close to pulling the trigger on a $110-million deal for an as yet unnamed firm. Breen, however, did not address the rumours that his company is under scrutiny from Schneider.