Wednesday, April 13, 2011

Tyco (TYC) Shares Jumping on Schneider Electric Merger Rumors

Rumors Tyco International Ltd. (NYSE:TYC) may be a takeover target of Schneider Electric (FR:SU) has shares of the company soaring.

Tyco shares rose 3.3 percent on Monday and jumped over 7 percent on Tuesday. In after hours trading they were up as well.

While Schneider is apparently in talks to make a deal, for some reason it thinks the leaking of the talks may make it harder to make a deal happen.

What Schneider seems to want in Tyco would be the ability for it to add security firm ADT to its product mix, as well as fire prevention services and equipment.

Tyco closed Tuesday at $52.33, gaining $3.61, or 7.41 percent. In after hours trading they were at $52.64, up $0.47, or 0.90 percent, as of 5:32 PM EDT.

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