French on last-ditch charm offensive to seal Aveva deal

Aveva and his French suitor are on a last-ditch charm offensive to win support for the proposed takeover.

Both companies have agreed on a deal that will see Paris-based Schneider Electric buy the 41 percent of the British software giant it doesn’t already own for 3225p a share.

But the deal – which Aveva values ​​at £10bn – needs shareholder backing in what looks set to be a razor-sharp vote tomorrow amid growing opposition.

A source close to the situation said: “Aveva and Schneider have visited their shareholders. The meetings started last week and end on Thursday.’

The source added that the two companies are flanked by their bankers – Lazard works for Aveva, while Citi represents Schneider.

So far, leading money managers Jupiter, M&G Investments, Davidson Kempner and Canadian company Mawer have come out and publicly stated that they will vote against the deal.

Another top 20 investor has joined them, but would not be named.

The fear in the Aveva and Schneider camps is that there will be many more in private who will also say no on Friday.

Aveva executives gave Schneider’s offer the thumbs up in September and urged investors to support it.

Aveva’s top buyer expects to earn £5.5 million if the deal is green-lit, and chief strategy officer James Kidd will walk away with £4.5 million.

A shareholder who will vote against the deal told the Mail: “The executives and the bankers have been out and mentioned the bright side of the deal.

“This is very normal in an M&A deal, but there is definitely a last-minute push. It didn’t change our minds. Maybe they’re afraid there’s a surprise ahead.’

The takeover of Cambridge-based Aveva is on the line as it requires the approval of at least 75 percent of minority shareholders in tomorrow’s vote.

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

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.

If the deal were greenlit it would be a huge blow to London as the UK appears to be turning itself into Europe’s Silicon Valley.

Russ Shaw, founder of Tech London Advocates, said: ‘It would be a shame to lose a British technology company from the London Stock Exchange. There aren’t many.’

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.

Schneider said the offer was final.