G4S Rebuffs $4B Takeover Offer From Allied Universal

G4S first announced Oct. 9 it had received an expression of interest from Allied Universal for a possible offer for the company.

LONDON — G4S, based here, said that it received a “highly conditional” takeover proposal from U.S. rival Allied Universal Security Services that it has rejected.

Allied Universal on Oct. 28 tabled the offer of at least 210 pence ($2.75) per share or approximately $4.3 billion, subject to due diligence, G4S said in a statement Nov. 3. The board rejected the proposal on the grounds it “significantly undervalues G4S and its prospects,” the company added.

“The board carefully considered this proposal with appropriate advice from the company’s financial and legal advisers and rejected it on the basis that the highly conditional offer, at 210p per share, significantly undervalues G4S and its prospects,” G4S statement reads.

The company first announced Oct. 9 that it had received an expression of interest from privately-held Allied Universal for a possible offer for the company. Canada’s GardaWorld had also put forward an offer of 190 pence ($2.48) a share for G4S which also been rejected.

Bloomberg News reported last month that G4S was approaching firms including Allied Universal in an attempt to solicit rival offers to Garda.

Garda, in a Nov. 3 statement, sought to cast doubt over Allied Universal’s credentials, and criticized 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, contrasting its rival’s.

Allied Universal is a security and facilities manager with more than 200,000 staff and $8.5 billion in revenue, according to its website. The company is backed by Canadian pension fund Caisse de Dépôt et Placement du Québec, private equity company Warburg Pincus and Brazilian bank J Safra Group.

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