Schneider bid $30b for Tyco? IControl raises $30m


Some say the leaking of the Tyco/Schneider news will not help the deal at all, but others clearly think the leaking–and rise in Tyco’s stock prices?—is applying the right pressure to the right people. I saw some interesting stuff last night on the potential Schneider/Tyco deal from the (UK) Daily Telegraph’s Ben Harrington, who is reporting that Schneider has made its bid, and has sent a letter of interest to Tyco’s US board. He says Schneider has been working with JP Morgan and Bank of America Merrill Lynch on the deal since September. Tyco, meanwhile, is working with GoldmanSachs, he said.

From the story: “JP Morgan, Bank of America Merrill Lynch and five French banks are said to be willing to provide a $13bn loan to Schneider to finance the transaction. The loan is likely to then be securitised. The banks are also willing to offer a $2.5bn bridge loan, which could be paid back at a later date with potential asset sales. Schneider has about $3bn cash on its balance sheet to contribute to the financing package.”

He says they’re sweetening the deal by offering Tyco chief Ed Breen a seat on the board of the combined companies. I just now learned that the WSJ and Reuters are reporting this as well. 

11 a.m. Here's an update to the Schnieder/Tyco story: Schneider says it’s not in discussions with Tyco

I’d reached out to Schneider’s press operation in France on Monday to see if they’d comment on the Bloomberg report, and hadn’t heard back until this morning, after I'd posted this blog. I received this press release from Anthime Capriol in their investor relations office.

“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.”

OK, I’m very curious now about how this is going to turn out ... Do you think it’s all a matter of how you define “currently”?

There's more financial news about iControl today. Our friends over at CEPro did some great reporting on fundraising efforts at iControl. Remember iControl? They’re the home security and management providers who merged with their competitors uControl in November. IControl has a partnership with ADT—which introduced its interactive Pulse product last fall, while new partner uControl has historically worked with broadband and telco providers. In a November interview, Paul Dawes and Jim Johnson told me that they’d be announcing a partnership “with a very large broadband provider” in the future. CEPro says the company is “gunning for the new Comcast Home Security business, which of course makes sense."

IControl is now seeking to raise $30 million. Of that, $28.5m has been raised, according to this April 8 SEC document, which CEPro kindly provides a link to in its story.

Further, CEPro points out that if you add this $30 million to the $45m they’ve already raised, you get $75m, which is roughly the same amount home automation company Control4 raised in 2010. Here's a link to the CEPro report.