Invensys Share Discussion Threads

[jak1] 29/7/2013 11:20

Anymore and I'm buying more, this is a gift...

[rumpelstiltskin2] 29/7/2013 10:42

Interim Management Statement

Q1 2013/14 performance

Overall the Group has made a solid start to the financial year with performance generally in line with our expectations. As expected, revenue in the first quarter was slightly behind the corresponding period last year but operating profit was significantly ahead.

The Group reorganisation that was implemented following the disposal of Invensys Rail remains on track to deliver the cost savings of £20 million per annum during this financial year, predominately in the second half, and an additional £5 million per annum next year.

[rumpelstiltskin2] 29/7/2013 10:42

happy to hold even if the deal doesn't go through as the stock appears to be on a solid recovery path now, with good growth prospects

[rumpelstiltskin2] 29/7/2013 10:19

I am not selling. I personally think these are cheap at the current price with an enterprise value of £2.6 billion and sales of £1.9 billion. wasn't Rail sold for 2.2 times sales?

[donkeystone] 29/7/2013 09:55

OK Folks I have to ask the question.
Do I continue to hold or sell?

[rumpelstiltskin2] 29/7/2013 09:54

this share price is now only 10% above the price on the day before the announcement

[rumpelstiltskin2] 29/7/2013 09:53

don't think there was anything in the sunday times. that should be a good omen then!

[tom111] 26/7/2013 13:16

YES DUE DILIGENCE means an investigation or audit of a potential investment.DILIGENCE means steadfast application,virtue of hard work,it seems to me Optimist rather silly on you to correct someone when you don't have a clue,good afternoon lol

[rumpelstiltskin2] 26/7/2013 13:15

schneider electric half year results are on Wednesday July 31 according to their website. perhaps they want to announce the deal then?

[rumpelstiltskin2] 26/7/2013 13:14

imo implies less exhaustive, they would already know the business well

[optimist] 26/7/2013 11:56

The Indicative offer is conditional on amongst other things, 'diligence' and not on 'due diligence'.

Can anyone explain what the difference is?

[tom111] 26/7/2013 11:27

If and when a firm offer is made any others parties interested will then show their hand.Guess they are still waiting the outcome of due diligence

[bakero] 26/7/2013 11:05

Looks more like we are moving towards being priced for no deal at all rather than a counter offer!

[tom111] 26/7/2013 10:05

Will there be a counter bid I ask

[jak1] 26/7/2013 07:07

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".


hxxp://www.independent.co.uk/news/business/news/invensys-profits-surge-as-talks-with-french-suitor-continue-8732825.html

[phoenix1234] 25/7/2013 14:26

Invensys plc - AGM trading update as 'possible offer' period continues

[jak1] 25/7/2013 09:45

Bit silly this now. Free Money to be made hear...

[rumpelstiltskin2] 17/7/2013 21:48

when you look at the price achieved for Rail, if these could sell at the same sales multiple, these are still cheap on that basis. some may spurn that comparison. but the company has transformed from a sprawling conglomerate to a more focused business and is in major recovery mode. a buyer also picks up huge tax losses. and the pension fund could be a major asset to a big player who could manage the risks and make billions if interest rates continue to rise!

[hobby2] 17/7/2013 21:01

.........so where will it end

After 12 years of all the ups and downs what will be the final act......most probably we will see activity from others in the run in to the 8th or beyond

This opportunity is unique to the majors, the brands Wonderware, Avantis, Foxborugh etc are key targets.............don't be surprised to see £6+

[jak1] 17/7/2013 12:49

Yep, that's why I'm hanging on. Waited a long time, and can wait a bit longer...


An auction, which may attract Emerson Electric Co. and Honeywell International Inc. (HON), could drive the price to 550 pence or more, Royal Bank of Canada said. The stock hasn't traded that high since 2003.

"We're not selling our shares," James Buckley, a London-based fund manager at Baring Asset Management Ltd., which oversees about $50 billion, including Invensys stock, said in a phone interview. "It has been linked with a number of other companies in the past. If you get a bidding war, then there's always the potential for people to pay up."


Still, Invensys' customer base is particularly valuable as the process-automation market consolidates and buyers may feel compelled to take advantage of the opportunity, Bell said.

"It's all very well to go through the potential bidders and say they won't do it because of 'x' or because of 'y,'" he said. "But when you have an asset that's as scarce as this that's up for sale, sometimes longer-term strategy outweighs near-term considerations."

[badwood] 16/7/2013 07:51

Schneider Electric, of France, was revealed last week to have made an indicative bid for Invensys because of pressure from the City Takeover Panel. However, no offer is guaranteed, The Times' Tempus column said. It has yet to complete due diligence on Invensys and has until August 8th to make its move, which could prompt a response from other suitors. "Those who have been holding Invensys shares since the start of last year, when I recommended them, might ponder the share price graph and think that the present price offers a decent enough profit. Certainly, if it were my money, I would be tempted to take about half off the table and keep the rest in as a gamble that a counter-bidder will emerge," Tempus added. The indicative offer from Schneider assigns a sky-high multiple to the shares of about 18 times earnings.

[jgp212] 15/7/2013 13:03

Here it is:
------------------------------------------------------------------------------
By Steve Moore - Friday 12 July 2013




Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.

Back in March I commented on FTSE-250 provider of industrial software, systems and control equipment, Invensys plc (ISYS), concluding, with the shares at 366p, that "though there is macroeconomic risk, Invensys looks a solid large-cap investment proposition at current levels, with potential future takeover upside" – see HERE.

The 'potential takeover upside' note was derived from the company having announced last year that it had "been in highly preliminary discussions with third parties" and had "received a highly preliminary approach" from industry giant Emerson Electric Co, as well as comments from brokers Morgan Stanley (which considered the remaining assets in the Invensys portfolio as "potentially more attractive than those in (the since disposed of) rail systems, due to desirability of installed base and higher margin software") and Oriel ("the simple question" for potential acquirers from here "is 'can you afford the double whammy of missing out on the critical mass/synergy benefits and allowing a competitor to become much stronger?' Answer – no").

The £1.742 billion disposal of the company's rail business to Siemens completed on 2nd May and Invensys has subsequently returned £625 million (76.7p per share) to shareholders. Alongside this, the company undertook a 4-for-5 share consolidation "in order to maintain (subject to normal market fluctuations) the market price for ordinary shares at approximately the same level as prevailed immediately prior to the implementation of the return of cash".

The shares had since risen to close yesterday at 440.1p, though are now further ahead at 508p following an announcement that the company;

"...has received an indicative offer from Schneider Electric SA of 505p per ordinary share (the 'offer price'), of which 319p per ordinary share is in cash and 186p per ordinary share is in new Schneider shares... the board of Invensys has indicated to Schneider that it is likely to recommend a firm offer at the offer price. Invensys and Schneider are in discussions about the details of the possible offer which is conditional on, amongst other things, diligence."

This was swiftly followed by a statement from France-headquartered, multinational power equipment maker, Schneider noting it;

"...confirms that it is in the early stages of discussions with the board of directors of Invensys regarding a possible offer... Schneider Electric believes that the strategic and financial rationale for this transaction, if consummated, is compelling... The enlarged group would significantly expand its access to key electro-intensive segments where Schneider Electric offers leading low and medium voltage as well as energy management solutions. It would also gain a leading position in the fast-growing software business for industrial operational efficiency."

The Invensys share price reaction today suggests the market believes other industry participants may be thinking along the (above noted) lines of Oriel and the Schneider statement certainly further emphasises the attractions of Invensys. However, the cautious investor should bear in mind that the current position is that "there can be no certainty that any firm offer will be made nor as to the terms on which any firm offer might be made", with due diligence still to be undertaken and other items agreed. Following today's announcement, Schneider is currently required to either announce a firm intention to make an offer for Invensys or announce that it does not intend to make an offer by no later than 5pm on 8th August.

The Analysis & Comment section of ShareProphets is independent financial commentary. These blogs do not represent the opinions of ShareProphets Ltd. and does not therefore accept responsibility for or make any warranties in connection with or recommend that you or any third party rely on such information. The information available at ShareProphets.com is for your general information and use and is not intended to address your particular requirements. In particular, the information does not constitute any form of advice or recommendation by ShareProphets.com and is not intended to be relied upon by users in making (or refraining from making) any investment decisions.

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