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Tyco Shares Fall After Buyout Rumors

Tyco International shares fell, with Schneider Electric denying reports that it has launched a $30 billion takeover bid for the Swiss manufacturer.

NEW YORK (AP) -- Shares of Tyco International Ltd. fell more than two percent before the market opened Wednesday, with France's Schneider Electric SA denying media reports that it has launched a $30 billion takeover bid for the Swiss manufacturer.

"In response to market rumors, Schneider Electric announced today that it is not currently in discussion with Tyco International regarding a potential strategic transaction between the two companies," the company said on its website. It said it would not comment further.

Late Tuesday, a report by Bloomberg News claimed a bid was being considered. The Wall Street Journal later reported the offer had been made and set at $30 billion.

Shares leaped almost 8 percent after the market closed Tuesday. It was down $1.11, or 2.1 percent, at $51.22 in premarket trading Wednesday. The stock is near a year high of $53.38.

For all of fiscal 2010, Tyco International earned $1.13 billion, compared with a year-ago loss of $1.8 billion. Revenue rose to $17.02 billion from $16.88 billion a year earlier. The company recently increased its dividend by 20 percent.

It owns a wide range of businesses including security systems maker ADT.

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