RUEIL-MALMAISON, France ( TheStreet) -- France's Schneider Electric said Wednesday it isn't in discussions with Tyco International (TYC) regarding a "potential strategic transaction between the two companies."
Schneider Electric, responding to a report in The Wall Street Journal, said it would make no further comment on the matter.
The Journal reported Wednesday that Schneider Electric has made a preliminary bid of about $30 billion for Tyco International. The newspaper cited people familiar with the matter.
"The board is studying the proposal," one person familiar with the matter told the Journal. The tentative bid "was a surprise," the person added.Tyco officials believe "it's going to take awhile to sort it out," the person said, adding it seems highly unlikely that Tyco, the Swiss conglomerate, would accept a $30 billion offer, and directors "would undoubtedly want it to go higher,'' this person said. There are antitrust risks to merging Schneider and Tyco, two of the largest players in security systems, the Journal noted. Schneider hired JPMorgan Chase last fall and Bank of America Merrill Lynch in November to examine a Tyco acquisition, people familiar with the matter said. Tyco shares rose Tuesday by 7.4% to $52.33 following a Bloomberg report of a potential Schneider and Tyco tie-up. -- Written by Joseph Woelfel
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