GE is set to continue on the acquisition trail, despite a sharp drop in its share price.
General Electric is considering a bid for French electrical equipment manufacturer Legrand after Schneider Electric's takeover of the firm was scuppered by the European Commission.

Schneider Electric bought Legrand in a deal worth 5.4 billion euros but hit trouble with the EC on antitrust grounds last October. It is expected to be given around one year to offload Legrand.

GE chairman Jeffrey Immelt said: "Legrand is a business that we know well and it's a situation that is in flux." The company is also monitoring the break up of fellow conglomerate Tyco for potential acquisition targets.

However, comparisons have been drawn between GE and the failing Tyco, with withering consequences for the company's share price. As much as 10% has been stripped from GE shares in recent weeks, prompting Immelt to reiterate that the company expects to hit and exceed its targets of 17-18% annual earnings growth.

The shock break up of Tyco, whose electrical acquisitions in recent years include big names such as ADT Fire and Security, Dorman Smith and Raychem, has affected many multinational conglomerates as the financial world gets the jitters over these multifaceted companies.

The collapse in shares in Invensys, the industrial controls, automation and ups business, has also seen its group break up as markets faltered.

Source

Electrical and Mechanical Contractor