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France's Schneider Electric sets sight on UK's Aveva again

Published 13/06/2016, 16:04
© Reuters.  France's Schneider Electric sets sight on UK's Aveva again
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(Reuters) - Aveva Group Plc (L:AVV) said it received a revised, conditional proposal from Schneider Electric SE (PA:SCHN), six months after the French company pulled out of a deal to buy a majority of the British software maker.

The proposed cash-and-stock deal, if completed, would see Schneider Electric owning a majority stake in Aveva, the company said on Monday. [nRSM0336Ba]

London-listed Aveva said it was is in preliminary discussions with Schneider Electric about the merits of such a transaction and its terms and that a potential deal would be a reverse takeover under UK listing rules.

Aveva, founded in 1967 as a spin-off from Cambridge University, had agreed upon a deal with Schneider in July, which involved Schneider paying 550 million pounds ($783 million) for new shares in Aveva.

The deal would have resulted in the French company taking a 53.5 percent stake in an enlarged group that also comprised Schneider's software operations. [nL5N1000XT]

But the companies called off the deal by mutual consent in December, saying the combination would have been too risky due to the complex structure of the deal. [nL8N1440PE]

Shares in Aveva, which makes software used to design oil rigs, ships and nuclear power stations, were up 9.9 percent on Monday, after the Financial Times first reported the news.

Trading in the stock was later temporarily suspended at the company's request. [nRSM0303Ba]

Shares in Schneider Electric, which makes electric components and energy management systems, were down 1.96 percent at 54.16 euros at 1338 GMT.

The company declined to comment when contacted by Reuters.

($1 = 0.7022 pounds)

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