* Peformance in Q1 in line with expecations
* Remains in discussions with Schneider
* Does not expect significant changes to market
LONDON July 25 British engineer Invensys
, the target of a takeover approach from France's
Schneider Electric, said on Thursday it had made a
"solid start" to the year.
Invensys, which produces software that helps to run power
stations, oil refineries and chemical plants, said revenue in
the first quarter was slightly behind the same period last year,
as expected, but operating profit was significantly ahead.
The company said it is still discussing the 3.3 billion
pound ($5.1 billion) takeover proposal it received on July 11
from French industrial group Schneider, which has until Aug. 8
to say whether it intends to make a firm offer or walk away
under UK takeover rules.
Invensys has long been mooted as a takeover target in an
industry dominated by larger rivals, particularly after the
disposal of its rail unit last year to strengthen its balance
sheet and pension fund.
The reorganisation after the rail disposal remains on course
to deliver cost savings of 20 million pounds during the current
financial year and a further 5 million pounds the following
year, it said.
This, as well as growth in its higher-margin software
division, is expected to boost performance for the year.
Shares in Invensys, which said it was likely to recommend
Schneider's offer of 505 pence a share, closed down 1.1 percent
on Wednesday at 498 pence, below the potential offer but at a 13
percent premium to the stock's price before the bid approach.