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
>To contact the writer of this article, click here: Joseph Woelfel >To submit a news tip, send an email to: firstname.lastname@example.org.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV