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| Invensys confirms takeover approach from Schneider | Invensys confirms takeover approach from Schneider |
| (35 minutes later) | |
| UK engineering firm Invensys has confirmed it has received a takeover offer from France's Schneider Electric. | UK engineering firm Invensys has confirmed it has received a takeover offer from France's Schneider Electric. |
| The board said it was likely to accept Schneider's offer of 505p per share, valuing the company at £3.3bn. | The board said it was likely to accept Schneider's offer of 505p per share, valuing the company at £3.3bn. |
| The statement, came after news of the talks emerged on Thursday, and sets the regulatory clock ticking, with Schneider now required to make a formal offer by 8 August. | The statement, came after news of the talks emerged on Thursday, and sets the regulatory clock ticking, with Schneider now required to make a formal offer by 8 August. |
| Schneider said a deal would help it focus on industrial automation. | |
| Invensys produces software and other systems to help control flows within refineries and chemical plants, as well as the "Triconex" computer system that provides safety controls for nuclear power plants. | |
| The London-headquartered engineering firm also works in a variety of other sectors, including oil refineries, air conditioning, household appliances and nuclear power. Less than 6% of Invensys' workforce is located in the UK. | The London-headquartered engineering firm also works in a variety of other sectors, including oil refineries, air conditioning, household appliances and nuclear power. Less than 6% of Invensys' workforce is located in the UK. |
| Schneider specialises in medium and low-voltage electrical power equipment. | |
| The mooted 505p offer price - which is split between 319p in cash and 186p in shares - is almost 15% above the 440p level at which Invensys' shares finished trading on Thursday. | The mooted 505p offer price - which is split between 319p in cash and 186p in shares - is almost 15% above the 440p level at which Invensys' shares finished trading on Thursday. |
| Invensys' share price promptly jumped to just below the offer price at the start of Friday trading. Schneider's shares, in contrast, fell almost 5% on the news. | Invensys' share price promptly jumped to just below the offer price at the start of Friday trading. Schneider's shares, in contrast, fell almost 5% on the news. |
| Invensys' shares fell back last year, after the UK firm cut profits due to over-running costs on a series of nuclear power stations it was constructing in China, and after separate takeover talks with Emerson of the US fell through. | Invensys' shares fell back last year, after the UK firm cut profits due to over-running costs on a series of nuclear power stations it was constructing in China, and after separate takeover talks with Emerson of the US fell through. |
| However, its shares have steadily rallied since November as profits have recovered, doubling from a low of 220p. | However, its shares have steadily rallied since November as profits have recovered, doubling from a low of 220p. |
| In May, the company sold off its rail division - which, among other things, is building a new high-speed link in Saudi Arabia with Ave of Spain - to Siemens of Germany, helping it to cover a shortfall in its pension scheme, and return £625m in cash to shareholders. | In May, the company sold off its rail division - which, among other things, is building a new high-speed link in Saudi Arabia with Ave of Spain - to Siemens of Germany, helping it to cover a shortfall in its pension scheme, and return £625m in cash to shareholders. |