Legrand's Future Ownership Uncertain

Feb. 22, 2002
Shares of Schneider Electric, Paris, jumped more than 7 percent on Feb. 14, following rumors that Siemens, Frankfurt, Germany, and General Electric, Fairfield,

Shares of Schneider Electric, Paris, jumped more than 7 percent on Feb. 14, following rumors that Siemens, Frankfurt, Germany, and General Electric, Fairfield, Conn., were among six firms making bids for Schneider's Legrand group, according to Reuters news service.

Reportedly, the introduction of these new bidders has raised both the stock price and the potential selling price of Legrand.

The European Commission ordered Schneider to put Legrand up for sale last October due to competition concerns.

According to Reuters, the Commission gave Schneider nine months from January to divest Legrand.

Schneider bought Legrand last year — its former rival — for 6.42 billion euros.

However, analysts didn't expect the new sale price to reach that level until General Electric and Siemens expressed interest. French holding company CGIP is expected to make an offer as well, according to the French newspaper, Les Echos.

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