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22 Feb 2021 | 08:01

GardaWorld says it won't increase G4S offer

(Sharecast News) - Canadian security services firm GardaWorld said on Monday that it will not raise its offer for G4S as it is not prepared to overpay, clearing the path for Allied Universal to buy its London-listed rival. GardaWorld chief executive officer Stephan Crétier said: "There can be no better owner for G4S than GardaWorld, but we are disciplined buyers and we will not overpay for a company with systemic ESG (environmental, social and corporate governance) issues that continue to come to light.

"GardaWorld has the skills, expertise and ambition to take on the challenges that G4S faces. We understand the people-oriented nature of our industry, we have a deep understanding of complex operating environments and a successful track record of profitably growing businesses."

"But a successful integration of G4S, a 530,000-employee platform operating in 85 countries will require sizeable resources; addressing its issues will require greater investment and without satisfactory engagement from G4S we have been unable to complete our due diligence."

Cretier said that as result, at an offer above 235p, there are "better and less risky opportunities" available to the company.

G4S agreed in December to be taken over by US-based Allied Universal in a £3.8bn, or 245p a share, deal. However, the UK Takeover Panel announced last week that if both GardaWorld and Allied did not make revised bids by 20 February, the battle for G4S could be settled via auction.

The two companies had until Saturday to make a revised bid or an auction process was meant to be kicked off during which GardaWorld and Allied Universal would have submitted sealed bids over the course of this week.
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