Invensys tackles debts with rights issue

ENGINEERING group Invensys is seeking to raise £500 million through new shares as it battles to rebuild its balance sheet.

The London-based firm is understood to have asked stockbroker Morgan Stanley to prepare for a rights issue to help it tackle debts of £816 million and a £700m hole in its pension fund.

A cash injection would also give Invensys more time to complete a disposal programme including assets outside its core rail signals and factory controls operations.