Tyco, Schneider Engaged in Early Stage Talks

While Tyco talking to France’s Schneider about merging or being acquired, the talks have yet to move to structure and value, according to people familiar with the matter.

Reports of those talks have sent Tyco shares up sharply over the last two days, but those leaks make the chances of a deal less likely, say bankers. “It’s hard enough to pull off a cross border deal of this size without a leak like this,” said one banker.

While Schneider has been looking at acquisition opportunities in the U.S., and Tyco would represent a fit for some of its French businesses, it does not have a home security business, one of the key components at Tyco. Said another banker, “this is not a must have for them.”

Follow David on Twitter:


Questions? Comments? Write to faberreport@cnbc.com.