Invensys profits surge as talks with French suitor continue

The British engineering group Invensys said it remains in takeover talks with France's Schneider Electric, having made a "solid start" to the financial year.

The company, which makes components for oil refineries, power stations and domestic appliances, said its first-quarter revenues were "slightly behind" the same period in 2012 although operating profits were "significantly ahead".

Of more interest though is the £3.3bn bid Schneider lodged for the company earlier this month, which could see it fall into foreign hands.

Rival bidders including the US conglomerate General Electric have been linked with the company, although no mention was made of this yesterday.

"Invensys and Schneider remain in discussions about the details of the possible offer which is conditional on, amongst other things, diligence and there can be no certainty that any firm offer will be forthcoming," the group said.

Invensys shares fell 4.1p to 493.9p. It held takeover talks with the US giant Emerson Electric last year.