G4S suitor cranks up takeover campaign

THE Canadian security firm mounting a hostile takeover bid for British rival G4S renewed its attack on the board, as it began its charm offensive with shareholders.

Security firm Garda World, which is backed by private equity giant BC Partners, said unforced errors by bosses have helped wipe £1bn off the company’s valuation.

It questioned if G4S had enough cash to pay for litigation that was ‘potentially crippling’.

G4S hit ba back, branding the suitor’s or’s comm comment as ‘nothing more than sca scare- mongering’. It announced a ten-year contract to run Five Wells We prison in Wellingborough, borough, Northamptonshire, which it sa said shows it had won back the Go Government’s trust.

The deal t to run the 1,680 category gory C priso prison will bring in £300m over the life lifetime of the contract.

The latest salvo comes as Garda sets out its stall for a hostile takeover over of G4S at 190p per share, valuing uing it at ju just under £3bn.

The bid has h been repeatedly rejected b by G4S management recently, a and key shareholders including fu fund manager Schroders ers are holding hold out for more.

Shares hav have bounced back above 200p since the takeover battle emerged, db but they were trading at around 330p in June 2017 – meaning many investors are still nursing heavy paper losses.

Around a quarter of shareholders have publicly opposed the offer, and last week Garda was criticised for telling investors they needed ‘educating’ about G4S.

G4S has been at the heart of several controversies, including its failure to deliver the security contract for the London Olympics, leading to the British Army being brought in.

The firm’s £2.7bn pension liability should be ‘a serious concern’ for shareholders, according to Garda, but G4S said it does not have a pension issue, as the fund also holds £2.4bn of assets.