Schneider Square D Schneider, the French electrical equipment manufacturer, has expressed interest in merging with its US counterpart Square D,...

Schneider & Square D

Schneider, the French electrical equipment manufacturer, has expressed interest in merging with its US counterpart Square D, only to be rebuffed by Square D's board. However, there is reason to believe that the company is in play, and Schneider is eager to gain access to the US market. This case examines the strategic fit of Square D for Schneider and the valuation of the company. The case provides a useful way of exploring the impact of typical assumptions made in Discounted Cash Flow analysis, and how to use the Abnormal Earnings approach for valuing a company in a takeover situation.