Attempting to throw cold water on a wave of market chatter, France’s Schneider Electric said Wednesday it is not “currently” in buyout talks with Tyco International (NYSE:TYC).
The denial comes after a series of reports this week indicated the maker of circuit breakers, fire alarms and video security systems had made a $30 billion preliminary bid for Swiss-based Tyco.
“In response to market rumors, Schneider Electric announced today that it is not currently in discussion with Tyco International regarding a potential strategic transaction between the two companies,” Schneider Electric said in the statement. The company added it will make “no further comment regarding this matter.”
In the wake of Schneider’s first public statement on the buyout talk, shares of Tyco sank 2.06% to $51.25 Wednesday morning. The stock leaped 7.4% to $52.33 during regular trading Tuesday, giving the company a market cap of $24.8 billion.
Tyco is the parent of ADT, the world’s largest security company, and also manufactures security devices and fire prevention products.
According to The Wall Street Journal, Schneider’s $30 billion preliminary bid came as a surprise to Tyco’s board, which is studying the proposal. Tyco is unlikely to accept that initial bid and would “undoubtedly want it to go higher,” the paper reported.
It’s clear a Schneider buyout of Tyco would face several obstacles, including regulatory hurdles and questions about the efficacy of cross-border transactions such as this.