Rumours of foreign bids for Invensys

Steve Dinneen
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ENGINEERING firm Invensys could be the target of a foreign takeover, with Swiss, French, German and Chinese firms all understood to be considering bids.

Potential suitors include Emerson Electric, Siemens, China Southern Rail (CSR) and ABB.

Sources close to Invensys played down the rumours to City A.M., saying the firm has been linked with numerous bids over the last two years. No bids had been tabled as of last night.

Analysts have long viewed Invensys as a candidate for break-up, a view that chief executive Ulf Henriksson appeared to endorse in November when he said CSR could acquire or take a stake in the business.

Invensys, which makes industrial process automation systems, signalling and control systems for railways and various control products for domestic appliances and other applications, made an operating profit of £248m in the full financial year ended March 2010.

Its operating profit in the last three months was unchanged from a year ago.