Schneider Electric SA is serious about its interest in Tyco International Ltd and remains in talks with lenders including French banks about financing a potential transaction, people familiar with the matter said on Wednesday.
Schneider's approach to the U.S. industrial conglomerate is preliminary and it has yet to secure financing commitments for a proposed transaction, these people said.
However, there is skepticism among some potential lenders that such a deal could go through given the large amount of financing required, and unclear fits between different businesses of Schneider and Tyco, one of the sources said.
There are also Tyco businesses that Schneider does not want to run, the source said. These people asked not to be identified because the discussions are confidential.
(Reporting by Nadia Damouni and Soyoung Kim, editing by Gerald E. McCormick)