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Schneider Electric, Rueil-Malmaison, France, issued a press release saying that it has reached "an agreement on the terms of a recommended offer by Schneider Electric to acquire the entire issued and to be issued share capital of Invensys plc", London, U.K. As Electrical Marketing reported last week, Schneider previously had made informal overtures to Invensys, inviting widespread speculation that rival companies would offer competing bids. Thus far, none has stepped forward.
Schneider's formal bid totalling Pounds 3.4 billion (US$5.2 billion) is priced at Pounds 5.02 per Invensys share, which is a premium of 14% on over the last closing price prior to announcement of discussions and a 27% premium over the last 3-month VWAP (volume-weighted average price) prior to announcement of discussions.
"Schneider...