Security firm G4S urges shareholders to block hostile takeover by rival Garda World after its offer is published
Security firm G4S has urged shareholders to block a hostile takeover by Canadian rival Garda World after the offer was published.
Garda detailed its plans in a statement on Saturday, holding on to its offer price of 190p per share, despite G4S ‘claims that it undervalues the company.
It also turned out that lawyers, PRs and bankers working for Garda could earn £ 312 million in fees if the deal goes through.
Hostile Offer: Garda set out its plans and stuck to its offer price of 190p per share, despite G4S ‘claim that it undervalues the company
The formal offer led to a robust statement from G4S recommending that shareholders “reject the offer and take absolutely no action.”
According to the company’s board, the Garda acquisition was ‘highly opportunistic’ and wanted to acquire smaller rival G4S to realize its global ambitions. “This should not be at the expense of G4S shareholders and other stakeholders,” he said.
It pointed to Garda’s mountain of debt and its annual losses over three years. G4S shareholders will vote on the proposal on November 7.
G4S shares, which traded at 145p before Garda announced its interest, were at 209p at Friday’s close. Garda could face competition, with Allied Universal reportedly showing interest.