Invensys shares spiked 9 per cent to 348p on Monday after chief executive Ulf Henriksson indulged in some loose talk of a possible Chinese bid. He told the Daily Telegraph that China Southern Rail (CSR), with whom Invensys has already signed a collaborative agreement, had the "possibility of acquiring Invensys" if the price were right - perhaps via a minority stake.
The market reaction was so extreme the company took the unusual measure of pouring cold water on the press speculation in a terse public denial. Profit-taking has since sent the shares back to 334p.
Bid and break-up speculation has hung over the industrial software group ever since its ill-timed creation out of BTR and Siebe in 1999. The novelty is that a Chinese company is now on the cards rather than usual suspects such as GE, Honeywell or Alstom.
