* Last-ditch efforts to sell to Carlyle, PAI failed-sources
* Schneider declines to comment
By Laurence Frost and Soyoung Kim
PARIS/NEW YORK, Oct 19 French engineering
company Schneider Electric has abandoned plans to sell
its CST sensors division for around $1 billion, people with
knowledge of the matter said.
Schneider pulled the plug after last-ditch efforts to reach
a deal with Carlyle Group and PAI Partners failed, two sources
said. They asked not to be identified because the discussions
Paris-based Schneider had turned back to the private equity
firms last month after exclusive negotiations with Singapore's
Avago Technologies broke down, the sources said.
Avago had initially bid close to $1 billion for CST, beating
out an $850 million offer from Carlyle and PAI, one of the
sources said. The negotiations reportedly foundered on the
chipmaker's reluctance to take on all of CST's French plants.
Schneider then renewed talks with the two funds but failed
to bridge the price gap, they said.
A Schneider spokeswoman declined to comment.
Shares in Schneider were down 1.3 percent at 49.72 euros by
1406 GMT. The stock is up nearly a quarter this year, giving it
a market value of some 27 billion euros ($35.35 billion).
The group has tightened its focus on building automation, in
a shift away from CST's sensors and actuators for the
automotive, aerospace, transport, energy and infrastructure
Schneider had previously attempted to sell CST in 2011,
after appointing JPMorgan Chase to handle the disposal,
but postponed the sale as volatile financial markets deterred
The division has 4,700 employees worldwide and recorded $660
million in sales last year.