Invensys denies takeover approach by Chinese

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The Independent Online

Invensys poured cold water on reports that it was the takeover target of a Chinese train-maker yesterday .

The FTSE 250 engineer, whose products include rail signalling, had been linked to a £2bn bid from China Southern Rail, majority-owned by the Chinese government.

But Invensys, which employs 3,000 people in Britain, said the company's position had not changed since an announcement last week, when it revealed talks with US giant Emerson Electric had come to nothing and no other discussions were taking place. But the company's shares still rose more than 1 per cent to close at 225.8p yesterday.

Alex Jarvis, an analyst at Peel Hunt, said: "We see good fundamental value for a business that is making good progress and contains some prize assets in terms of brand names and strong technologies in growing markets."

Back in 2010, Invensys' then chief executive, Ulf Henriksson, told a newspaper that Invensys could be the target of a takeover by China Southern Rail, sending shares soaring. The company was then forced to issue a statement denying it was in talks.