Invensys' target Baan revises losses upwards

The troubled Dutch software group Baan, which the factory controls maker Invensys wants to buy for 762m euros, issued results yesterday that revealed its financial situation was worse than previously thought. Baan said it has net losses of £208m in 1999 on revenue of £415m.

The troubled Dutch software group Baan, which the factory controls maker Invensys wants to buy for 762m euros, issued results yesterday that revealed its financial situation was worse than previously thought. Baan said it has net losses of £208m in 1999 on revenue of £415m.

The company restated its accounts, since it released unaudited figures in February. This showed its new audited revenue figure was 2.3 per cent lower than previously announced.

Invensys must acquire 95 per cent of Baan's shares before the outstanding holders of stock are compelled to sell out. But its efforts are being thwarted by ING, the Dutch financial services group, which is reluctant to sell its shares.

ING owns 5.9 per cent of Baan and under Dutch tax law could stand to recoup more of its investment if the troubled software company was liquidated. The Dutch reformative party RPF yesterday entered the debate and called on ING to act "consciously" and support the merger.