Security firm G4S has urged shareholders to block a hostile takeover by Canadian rival Garda World after its bid was published.
Garda set out its plans in detail in a statement on Saturday, sticking by its offer price of 190p per share despite G4S’s claim it undervalues the company.
It also emerged that lawyers, PRs and bankers working for Garda stand to make £312m in fees if the deal goes ahead.
Hostile bid: Garda set out its plans, sticking by its offer price of 190p per share despite G4S’s claim it undervalues the company
The formal offer prompted a robust statement from G4S, recommending that shareholders ‘reject the offer and take absolutely no action’.
The firm’s board said Garda’s takeover was ‘highly opportunistic’ and the smaller rival wanted to acquire G4S to realise its global ambitions. ‘This should not be at the expense of G4S’s shareholders and other stakeholders,’ it said.
It pointed to Garda’s debt mountain and annual losses over three years. G4S’s shareholders vote on the proposal on November 7.
G4S shares, which were trading at 145p before Garda announced its interest, stood at 209p at Friday’s close. Garda could face competition, with Allied Universal reportedly expressing interest.