Chinese may bid for signalling firm
British rail signalling firm Invensys is back in the takeover spotlight as a Chinese train maker considers a £2 billion bid for the group, it was reported.State-backed group China South Locomotive is looking at a potential offer for the London-based engineering electronics firm as part of ambitions to expand into Europe, according to The Sunday Times.
The reported interest reignites takeover speculation surrounding Invensys, which recently sent shares plunging after confirming that bid interest from US giant Emerson Electric had come to nothing.
Invensys, which employs 3,000 people in the UK out of a total workforce of 20,000, develops technologies for a wide range of sectors including mass transit rail networks, oil refineries and air conditioning.
It saw its market value soar to £2 billion amid the takeover hopes, but shed 17% in one day on the Emerson disappointment.
China South Locomotive already knows Invensys well, having shared a joint venture with the group.
The Chinese group, which claims to be the world's largest train manufacturer, is thought to be eyeing a number of European takeover targets.
If it was to secure a deal with Invensys, it would be the latest in a line of British technology businesses to attract overseas interest.
Autonomy and Misys have already been sold to American firms, while Logica has backed a £1.7 billion takeover offer from Canada's CGI Partners and handheld computer maker Psion has agreed a £129.3 million deal with Motorola Solutions.
The bid interest in Invensys follows tumbling shares in the group earlier this year after it warned in January that a series of project delays, mostly involving eight nuclear reactors in China, would hit profits.
Other potential suitors for the UK company are thought have included Siemens, ABB and General Electric.
China South Locomotive already knows Invensys well, having shared a joint venture with the group.
The Chinese group, which claims to be the world's largest train manufacturer, is thought to be eyeing a number of European takeover targets.
If it was to secure a deal with Invensys, it would be the latest in a line of British technology businesses to attract overseas interest.
Autonomy and Misys have already been sold to American firms, while Logica has backed a £1.7 billion takeover offer from Canada's CGI Partners and handheld computer maker Psion has agreed a £129.3 million deal with Motorola Solutions.
The bid interest in Invensys follows tumbling shares in the group earlier this year after it warned in January that a series of project delays, mostly involving eight nuclear reactors in China, would hit profits.
Other potential suitors for the UK company are thought have included Siemens, ABB and General Electric.
© 2013 Press Association