UPDATE 1-Invensys says talks over bid from Emerson failed

Thu Jun 21, 2012 2:56am EDT

* Says had preliminary talks with Emerson and others

* Says no longer in talks with any suitors

* Shares spiked 27 pct on Wednesday on report of talks

LONDON, June 21 (Reuters) - British engineer Invensys said on Thursday it had held preliminary discussions about a takeover with third parties including Emerson Electric but that the talks had come to an end with no offer.

Bloomberg reported on Wednesday that Invensys was considering a sale after Emerson expressed an interest in buying some or all of the firm, sending shares in Invensys up 27 percent.

"The company confirms that, whilst it had previously received a highly preliminary approach from Emerson Electric Co. for the group, these discussions are no longer ongoing," it said.

"Furthermore there are no other discussions taking place in relation to an offer for the group."

Invensys, which makes rail signalling, industrial systems for nuclear power stations and oil and gas plants, and controls for domestic appliances, did not name any other parties, but a report last month said Siemens, ABB and General Electric had also made informal contact.

The group, which had a market value of 2.09 billion pounds ($3.3 billion) after the stock spiked to a 10-month high on Wednesday, has long been viewed as a takeover target because it is smaller than most of its competitors, making it one of a few tradable assets in the global engineering sector.

Former chief executive Ulf Henriksson speculated in November 2010 that its partner China Southern Rail could also do a deal if the price was right, although the company later issued a statement downplaying the comments.

Analysts have said the group's large pension liabilities are a hurdle to any deal.

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