Schneider Electric’s swoop on Aveva hanging in the balance

The French takeover of one of Britain’s largest technology companies is on edge as shareholder opposition mounts.

Paris-based Schneider Electric – which already owns 59 percent of FTSE 100-listed Aveva – plans to buy the remaining 41 percent for 3,225 pence per share in a deal that values ​​the Cambridge-based software company at £10 billion.

But the takeover is on the line as it requires the approval of at least 75 percent of minority shareholders in a key vote on Friday.

Since the French group cannot vote, it would only take 10 percent of the total shareholder base to reject it to block the deal.

And there are growing signs that resistance to the proposals could thwart Schneider’s assault on one of Britain’s oldest tech companies.

City heavyweight Jupiter – a top 40 shareholder of Aveva – was the latest to speak out, warning that the deal would be a hammer blow for London as the UK looks to turn itself into Europe’s Silicon Valley.

Another top 20 investor, who declined to be named, said: “We believe Schneider Electric’s current offer for Aveva significantly understates the company’s true long-term value.

“We are concerned that the approach seems very opportunistic at a time of business model evolution and follows a difficult period of price development.

“Aveva is a leading UK software company, which we believe will play an important role in accelerating the climate transition, as a facilitator of green solutions for its customers across multiple end-market industries.

On this basis, we believe that the offer does not adequately reflect the future value creation potential of the company.”

They joined other leading money managers, including M&G Investments, Davidson Kempner and Canadian company Mawer, all of whom have previously said they would vote against the deal.

Schneider first made an offer for the rest of the company in September, offering a 3,100 pence share for the 41 percent of Aveva it doesn’t already own.

But after New York-based Davidson Kempner accused the French company of “opportunism” and “poor communication,” the offer was raised to 3,225 pence per share on Nov. 11.

However, Schneider said the offer was final.

Speaking to the Mail last night, Jupiter investment manager Richard Buxton said: ‘It would be good for London and long-term thinking if voters said no.

Schneider’s November 11 raise was not much. “But the question is whether the holders want to reject them and remain as a minority.”

Buxton is one of the most recognized fund managers in the city and has previously called for software company Arm to come home and be listed in London.

Aveva is one of the few remaining technology companies from the London Stock Exchange. It evolved from Cambridge University in the 1960s and provides software to help engineers design major industrial projects, as well as products that help run factories.

Company Secretary Grant Shapps is under increasing pressure to intervene in the Aveva deal for national security reasons.

Schneider’s joint venture with Chinese conglomerate Delixi Electric is particularly feared. Critics say that if Aveva is taken over, the patented technology risks falling into Chinese hands.