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GardaWorld keeps options open as G4S backs Allied bid

Disappointed bidder withdraws a previous ‘no increase’ statement

British security company G4S has agreed a £3.8 billion (€4.2 billion) takeover with US group Allied Universal.

Wed Dec 9 2020 - 15:49

Canada's GardaWorld on Wednesday gave itself the option of increasing its bid for G4S after the British security company agreed a £3.8 billion (€4.2 billion) takeover with a rival.

G4S on Tuesday agreed to a takeover by Allied Universal, picking the US company over Canadian rival GardaWorld after a two-month bidding war. It had rejected GardaWorld's offer of 235 pence per share in favour of Allied's bid, which was 10 pence higher.

GardaWorld said it had withdrawn a no-increase statement in relation to its G4S offer price.

G4S said that GardaWorld’s latest announcement did not change its intention to unanimously recommend Allied Universal’s offer.

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Shares in G4S, one of the world’s largest private security companies, hit their highest level since August earlier on Wednesday.

Some analysts expect GardaWorld to raise its bid for G4S, but they also said Allied Universal should have more cost synergies given its greater geographic overlap with G4S. – Reuters

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