Invensys Share Discussion Threads

[hobby2] 01/8/2013 07:09

.....Emerson

[rumpelstiltskin2] 31/7/2013 22:52

even on the numbers in the announcement they would get additional annual profits of €205 million a year from 2018. with the installed base of £12 billion I am betting it will be much more, and probably a lot more cost savings too

[bakero] 31/7/2013 22:38

Yep, because as we all know profit is vanity and revenue is sanity! :-)

[rumpelstiltskin2] 31/7/2013 21:19

imo it will be an enormous coup for Schneider Electric if they succeed with this measly offer. £3.4 billion - that's £2.8 billion excluding the £600m cash, for a £1.9 billion revenue business. Remember Invensys Rail was sold to Siemens for 2.2 x revenues!

look at the synergies from the announcement, these are almost certainly very conservative!

Revenues - €400m , with €65m EBITA. they apparently get an installed base of £12 billion , so I bet they can do much better than that!

Costs - €140m .

€500m tax savings.

[waldron] 31/7/2013 16:44

Schneider Electric Agrees 502 Pence Per Share Offer for Invensys
PrintAlert
Schneider Electric (EU:SU)
Intraday Stock Chart
Today : Wednesday 31 July 2013
By Ian Walker
LONDON--French electrical equipment maker Schneider Electric SA (SU.FR) Wednesday agreed a cash and share offer for U.K.-listed global technology company Invensys PLC (ISYS.LN), which values it at 3.4 billion pounds ($5.2 billion), or 502 pence a share and is a 14% premium to its share price on July 11.
Under the offer Invensys shareholders will get 0.025955 New Schneider Electric shares and 372 pence in cash, and will have the opportunity to change the ratio of shares and cash under a 'mix and match' election.
On July 11 Invensys said it had received an indicative offer from Schneider worth 505 pence a share, with 319 pence in cash and the balance in shares.
Schneider Electric said the deal will generate significant revenue savings of 400 million Euros ($530.5 million) a year per annum by 2018 as a result of enlarged offerings, complementary customer bases and additional scale from the integration of Invensys with Schneider Electric. It also expects cost savings of EUR140 million per annum by 2016.
Invensys Chairman Nigel Rudd said the offer from Schneider Electric represents an attractive value for shareholders and reflects the future growth prospects.
Write to Ian Walker at [e-mail]

[tom111] 31/7/2013 14:41

The Sunday Times where wrong for a start,cant take too much notice of the press,its early days yet

[dashton42] 31/7/2013 09:34

The market (and all the recent press I've read) seems to think that there won't be any rival bidders joining the party. Let's hope they're all wrong...

[rumpelstiltskin2] 31/7/2013 07:55

emersom could get even more synergies

[rumpelstiltskin2] 31/7/2013 07:39

a measly bid when you look at the enormous synergies.

[jak1] 31/7/2013 07:27

Here we go...

Schneider Elec. SA
Recommended Offer for Invensys Plc
RNS Number : 5561K
Schneider Electric SA
31 July 2013

[bakero] 31/7/2013 07:22

Under the terms of the Offer, Invensys Shareholders will be entitled to receive: For each Invensys Share:372 pence in cash.The Offer represents a value of:-- 502 pence per Invensys Share, or GBP3.4 billion for the entire issued and to be issued ordinary share capital of Invensys, based on the closing price per Schneider Electric Share on 11 July 2013

[jak1] 30/7/2013 22:22

yes, hopefully the bidding begins tomorrow after Schneider's results...


hxxp://www.cnbc.com/id/100924896


France's Schneider Electric is nearing a 3.3 billion pounds ($5.07 billion) deal to acquire British engineer Invensys and could announce the agreement at its results on Wednesday, three people with direct knowledge of the matter said.

[tom111] 30/7/2013 17:17

And the bidding starts

[rumpelstiltskin2] 30/7/2013 16:59

we shall see. I always thought it made sense. and lets hope Schneider's results are good and share price goes up!

[tom111] 30/7/2013 16:11

You were right Rumpy

[tom111] 30/7/2013 16:07

Yes please

[donkeystone] 30/7/2013 16:04

Well if anyone else is coming I suggest they get a move on

ttfn

[rumpelstiltskin2] 30/7/2013 13:49

as I pointed out earlier, their results are tomorrow

hxxp://www.schneider-electric.com/sites/corporate/en/finance/presentations/financial-results.page

[tom111] 30/7/2013 13:40

Only 7 working days left for a decision,seem to be dragging it on a bit

[rumpelstiltskin2] 29/7/2013 21:44

some brokers and newspapers have been saying there wont be a rival bid, which I guess is why the shares have been drifting back. so it will be interesting

[tom111] 29/7/2013 21:18

I go along with that hobby2, I think any other parties interested will wait until an offer is on the table before they make a move.

[hobby2] 29/7/2013 20:44

............yes there is little downside risk here

the company's finances are now transformed following the Rail disposal, the pension issue has been neutralised.......... imo the worst that can happen is the deal goes through without further interest

[badwood] 29/7/2013 16:34

Donkeystone

Us shareholders are never satisfied. Greed is a destructive force when it comes to investing. We are talking about 5% upside if Schneider bids against a massive downside if Schneider walks away!!!

Hold or sell? It all depends on your appetite for risk and one's ability to control our natural greedy instincts. If you are a gambler then either hold or if you are feeling exceptionally reckless short Invensys. On the other hand if you are a more conservative investor sell 50% now.

As for me, I am too optimistic for my own good. As I have been holding for 10 years I am going to wait a few more days as the odds favour Schneider tabling a bid. The only reason I didn't sell when the price was north of 500 was to see if other bids materialised, ever the optimist. Even if Schneider walks away some other company down the line will gobble up Invensys. It would just mean hanging on for a few more months or years.

[rumpelstiltskin2] 29/7/2013 15:01

trades at a discount as presumably some investors wont be able to hold Schneider Electric shares. but once a bid is tabled you could start getting some investors using Invensys as a cheap way into Schneider. Schneider results on Wednesday will be interesting