BUZZ-Melrose Industries: choppy morning after mixed update

** Engineer Melrose Industries recovers from early weakness after mixed trading update

** Elster trading strong in the ten months to Oct (HKSE: 3366-OL.HK - news) 2015 with sales up 14% versus last yr at constant currency, 6% if excluding the acquisition of Eclipse in November last yr; sale of Elster to Honeywell due to complete Q1 2016

** As previously announced, Brush -- the world's largest manufacturer of electricity generating equipment -- seen challenging end-market conditions; trading in line for FY albeit potentially towards the lower end of the range

** Melrose (LSE: 136541.L - news) -- a turnaround specialist, which follows a buy-improve-sell strategy -- says backdrop for acquisitions getting better (amid uncertain environment for industrials)

** Investec (LSE: INVP.L - news) cuts rating to "add" from "buy" on valuation grounds (+16% from early July low), otherwise says "all is going to plan" at Melrose ahead of next round of potentially value-creating acquisitions

** Stock now up 0.5%, having fallen as much as 3.2% earlier (Reuters Messaging: noor.hussain.thomsonreuters.com@reuters.net)