SDM Newswire / Trends & Industry Issues

Speculation Mounts Over Whether Schneider Is Bidding $30 Billion for Tyco

April 13, 2011
/ Print / Reprints /
ShareMore
/ Text Size+

Speculation over a potential takeover of Tyco, ADT and SimplexGrinnell’s parent company, by Schneider Electric, the French electrical engineering group, has risen to a fever pitch since Bloomberg reported on Monday that Schneider had begun researching a Tyco acquisition and The Wall Street Journal followed with reports that a Schneider bid for $30 billion had landed on the negotiating table.

While Tyco has at press time yet to address the rumored discussions, Schneider issued a statement Wednesday morning denying those reports: “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 stated that it would make no further comment regarding this matter.”

However, this assertion has done little to stop the spread of stories and opinions on the matter. Many dismiss Schneider’s statement as ambiguous and attribute the company’s effort to debunk rumors to the drop in Schneider’s stock since these first reports emerged on Monday as well as an attempt to avoid increasing Tyco’s purchase price.

Bloomberg quoted Paris-based analyst, Pierre Boucheny, saying, “Schneider’s statement leaves the door open, and it’s in their interest to calm things down as Tyco has risen a lot. The market’s message to Schneider is that there’s a funding issue and that they have to come up with a clear divestment plan.”

All reports do seem to agree that the companies are only in the beginning stages of discussing the matter and therefore the full impact of a Tyco buyout is more than uncertain. What do you believe a successful acquisition of Tyco by Schneider could mean for the security industry? 

Did you enjoy this article? Click here to subscribe to SDM Magazine. 

You must login or register in order to post a comment.

Multimedia

Videos

Image Galleries

AiN Group 2014 Live & Learn Conference

AiN (Authorized Integrators Network) Group, now in its 13th year, held its first stand-alone conference in late January at the Sandpearl Resort in Clearwater Beach, Fla. AiN is the managing partner of GE Home and Security Technologies (GEHT), a network of about 200 dealers who are authorized to sell and install GE-branded security systems from Interlogix, as well as sound systems, lighting, home automation, central vacuum, and other technologies from approximately 30 approved vendors.

Podcasts

Diebold Security added more than 30 new national and global commercial customers in 2013. Bill Fitzhenry, vice president of Commercial Sales for North America, Diebold Security, discusses what led to such growth and describes Diebold Security’s strategy going forward.

More Podcasts

Transferring Video

What is your preferred way to transfer video footage?
View Results Poll Archive

SDM Magazine

August 2014

2014 August

In the August issue of SDM Magazine, find out how you can find success in the residential security market as well as the best selling products for residential customers. Read about the 2014 CSAA Awards, how to re-invent the Intrusion Panel, and how to price and sell cloud video storage to your customers. Read up on the latest news in the security industry as well as this month's popular products and resources to help your enterprise succeed.
Table Of Contents Subscribe

Clear Seas Research

Clear Seas logoWith access to over one million professionals and more than 60 industry-specific publications, Clear Seas Research offers relevant insights from those who know your industry best. Let us customize a market research solution that exceeds your marketing goals.

THE SDM STORE

SDM Top Systems Integrators Report
2010 Top Systems Integrators Report
The SDM Top Systems Integrators Report ranks, by total annual revenue, the largest U.S. firms that contract electronic security projects for commercial, industrial, institutional, government, and other non-residential markets.
More Products

SDM Green Page

Green leaves

Click here to visit the SDM Green page!

STAY CONNECTED

Facebook logo 40px 2-12-13 Twitter logo 40px 2-12-13  YouTube  LinkedIn logo 40px 2-12-13Google+