Shares fall as Invensys disappoints

SHRINKING engineering group Invensys offloaded its US metering business today for a disappointing £388m, sending its shares plunging more than 5% to 30 1/2p, a 1 3/4p fall.

City hopes had been high that Invensys chief executive Rick Haythornthwaite would realise as much as £550m for Invensys Metering Systems, a world leader in advanced metering and communications solutions for utilities.

But the sale to US-owned IMS Meter Holdings, although the biggest cash injection yet for the British group, raised less than expected. Haythornthwaite admitted today the sale was at the lower end of estimates.

He has been forced to sell off businesses as the engineering group faces up to its £1.6bn of debts as well as a £900m pension deficit.

Three other businesses are up for grabs. A series of sell-offs this year has helped lift the share price from a lowly 9 3/4p last April.