General Electric, Honeywell and Schneider eye up Novar

General Electric plans to enter the bidding war for Novar, to ward off a hostile offer from Melrose. Other groups believed to be mulling over entering the fray are Honeywell and Schneider, the electrical equipment makers, and Siemens, the German industrial conglomerate.

Melrose made a £625m bid that has been dismissed by the incumbent board as inadequate – alerting General Electric and others to the possibility of making a “white knight” counter offer.

Executives close to the company say the bidders are most interested in Novar’s building controls subsidiary, Intelligent Building Systems, which has a turnover of more than £600m.