The result has been mainly put down to the failed attempt to acquire French rival Legrand. A provision of 1.4 billion euros to cover the expected cost of the failed acquisition is included in the figures.
However, in bullish mood, chairman Henri Lachmann said: "Schneider is studying other potential takeovers, alliances and major acquisitions."
Several financial and industrial groups are said to be interested in buying Legrand from Schneider. These include financial investors Cinven, BC Partners and Blackstone Group, which may propose a joint bid. Similarly, Kohlberg Kravis Roberts and CVC Capital Partners are also said to be considering a bid.
Among the potential industrial buyers, Siemens and General Electric are seen as front-runners, although GE chairman Jeffrey Immelt recently said that Legrand was "not at the top" of his list of priorities.
Legrand's figures for 2001 showed net profits down 25% at 176 million euros from 235 million euros in 2000. Legrand hopes to stabilise results this year with a strong second half.
Source
Electrical and Mechanical Contractor
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