Siemens paying for Invensys Rail out of liquidity

FRANKFURT Thu Nov 29, 2012 3:17am EST

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FRANKFURT Nov 29 (Reuters) - Siemens AG is paying for its 1.74 billion pound ($2.8 billion) acquisition of Invensys' rail business out of existing liquidity, the Infrastructure & Cities division's finance chief said.

"Siemens will not take on any external debt as part of this deal," Hannes Apitzsch told journalists and analysts during a conference call on Thursday.

The deal, announced late on Wednesday, vaults Siemens well ahead of rivals in rail signalling, with a 17 percent market share, almost double the closest rivals Alstom and Ansaldo STS.

Siemens had almost 11 billion euros ($14.2 billion) of cash at the end of September.