Invensys yesterday declared it has received a GBP3.3 billion buyout bid from Schneider Electric, a French conglomerate. Invensys was created in the merger of British manufacturers Siebe and BTR in 1999. Invensys helps in automating technology for everything from power stations and oil refineries to appliance manufacturers and mining companies. Invensys could now potentially become part of a Paris-headquartered group.
Shareholders in the FTSE 250 firm are likely to welcome the preliminary offer.
"The board of Invensys has indicated to Schneider that it is likely to recommend a firm offer at the offer price," the firm said in a statement.
The offer may well bring an conclusion to one of the lengthiest takeover sagas in the City. It would also effectively symbolize another coup for Invensys chairman dealmaker Sir Nigel Rudd. Rudd had previously help guide the sale of Pilkington to a Japanese company and Alliance Boots to foreign private equity conglomerate.
JP Morgan Cazenove and Barclays had been counseling Invensys on its defence against potential suitors.
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