Invensys advisers pocket £108m

FORMER Footsie process engineer Invensys bounced 2 3/4p to 26 1/2p as it unveiled its £2.7bn refinancing.

But eyebrows were raised as its City advisers, led by Deutsche Bank, Cazenove and Morgan Stanley, tucked into £108m in fees for arranging the deal.

Chief executive Rick Haythornthwaite is abandoning last year's big disposal programme. Instead he is raising £450m from selling new shares at 21 1/2p and borrowing £2.25bn over five to seven years.

This cuts liabilities, including the pension fund deficit, to an estimated £1.95bn. Crucially, it also averts June's £500m credit crunch.

Haythornthwaite denies the disposal programme failed. 'When we put those businesses on the market, we had no choice. A year ago we couldn't even dream of refinancing. But the markets have turned around.'

He sees a pick-up in business activity, but warned: 'We're not prepared to call a strong rebound yet.'

The cash call will leave the company with 5.7bn shares.