Security company G4S rejects second takeover offer
G4S, the world’s largest security company, said on Tuesday it had rejected a takeover proposal from US competitor Allied Universal Security Services, with the company now at the centre of a potential tussle between two suitors.
Allied Universal on October 28 tabled a “highly conditional indicative offer” of at least 210p per share, subject to due diligence, G4S said in a statement on Tuesday. The board rejected the proposal on the grounds it “significantly undervalues G4S and its prospects”, it said. Shares of G4S gained 4.5 percent to 213.70p in London, giving the company a market value of £ 3.3bn. The move marks the second suitor to be turned away by the British firm, which is publicly fighting a hostile bid from Canada’s GardaWorld. G4S CEO Ashley Almanza said in an interview last week that the company had not seen any mergers that make sense and will push ahead with a turnaround plan. G4S recommended last week that shareholders reject Garda’s bid, which is backed by private equity firm BC Partners, calling the offer of 190p per share “wholly inadequate”.
“We have not seen a potential combination yet that may have been in the best interest of shareholders,” Almanza said in the interview, without naming any other suitors. “The board believes in our strategy.” Bloomberg News reported in October that G4S was approaching firms including Allied Universal in an attempt to solicit rival offers to Garda.
Allied Universal is a security and facilities manager with more than 200,000 staff and $ 8.5bn in revenue, according to its website. The biggest shareholders include Canadian pension fund Caisse de Depot et Placement du Quebec and buyout firm Warburg Pincus.
Garda, in a statement on Tuesday, sought to cast doubt over Allied Universal’s credentials, and criticised G4S management’s handling of the situation. Such a tie- up would face “insuperable” antitrust issues, it said, adding that Garda’s offer has been made public, unlike its rival’s. The Canadian suitor also stressed that if G4S gives others access to any information — such as due diligence — it is entitled to the same material under UK takeover law.“The G4S board — instead of shadowboxing — should without delay engage with us,” Garda said in an e- mailed statement. “Our financing is real, our offer is a matter of public record and our intent is serious.”