Schneider Reportedly Seeks Private Equity Firm Partner to Buy Tyco
The internet is once again calling Schneider’s bluff as new reports surfaced today that the French global company is exploring options to buy out Tyco International. Read about previous rumors here.
This time, The New York Post cited two anonymous sources close to the situation saying Schneider is speaking with private equity firms to partner with in the acquisition of Tyco businesses. According to that report, Schneider has not yet chosen a firm to work with and the possibility exists that more than one private equity firm will come together to make their own bid on Tyco.
If anything has been cleared up since the rumors first surfaced is that Tyco is open to a sale. However, Schneider has repeatedly denied having plans to be the buyer.
Two weeks after the initial report, Ed Breen, chairman of the board and chief executive officer at Tyco made it clear that the company is open to evaluating bids. “We always, as a management team, present to our board and talk to them about all the alternatives you can have to create long-term sustainable shareholder value,” Breen said on an April 28 conference call.
Meanwhile, after Schneider refuted being in talks with Tyco on April 13 — a statement that was met with no small amount of skepticism — Schneider CEO Jean-Pascal Tricoire reiterated the company’s position to investors on an April 20 conference call: “There is no plan of large-sized acquisitions now and in the foreseeable future.”
The New York Post also speculates on other possible bidders for Tyco, including Siemens and United Technologies, and whether a partnership with an equity firm would allow Schneider to take over Tyco’s fire and security business but not its valve division.