Schneider Electric , the French engineering specialist, has confirmed the details of its bid for Invensys (ISYS) which, although it has been recommended, still leaves the door open for potential rival bidders to attempt a gazumping.
The bid, which values Invensys at 502p a share, takes the form of a mixture of 0.26 Schneider shares and 372p a share in cash for each Invensys share. This represents a 14 per cent premium to the 440p share price when Invensys announced it was in an offer period on 11 July. A mix and match facility will be available for Invensys shareholders, which could mean some getting more cash should others accept more paper, although the total funds available will not change.
Schneider's board says it believes it can generate "revenue synergies" of €400m a year by 2018 due to the two companies' complementary products and customer bases and cost savings of €160m a year should be achievable by 2016. Integration costs are estimated at €160m over the next two years.
