Schneider, PE Firms Reportedly Mull $30B Tyco Bid
Shares of Tyco International (NYSE:TYC) rallied Friday morning amid renewed chatter that France’s Schneider Electric is eyeing a $30 billion buyout of the parent of ADT.
According to the New York Post, Schneider is in talks with private-equity firms about teaming up for a bid to acquire Princeton, NJ-based Tyco.
Talks are at an early stage and it hasn’t been decided which firms Schneider would partner with and how they would divide Tyco’s assets, the paper reported.
The report comes after The Wall Street Journal said last month Schneider had tabled a preliminary buyout offer for Tyco. Schneider said at the time it was not “currently in discussions with Tyco International regarding a potential strategic transaction.”
It’s also possible several private-equity firms will make their own run for Tyco, which also has flow control , fire protection services and safety products businesses, the paper reported.
"[CEO] Ed Breen has made it pretty clear Tyco is for sale and he wouldn't object to a bid," a source told the Post.
Boosted by the renewed buyout speculation, Tyco’s stock climbed more than 7% in Friday’s premarkets before retreating. Tyco gained 3.82% to $51.39 as U.S. markets opened.