G4S to conduct formal review following failed £5.2bn ISS deal

G4S is to conduct a formal review of the role played by its financial advisers in the wake of the firm’s botched attempt to buy Danish cleaning group ISS.

The security services firm abandoned the unpopular £5.2bn merger last week at the eleventh hour after shareholders expressed concerns about the takeover strategy and size of a rights issue to fund the deal.

Investors including M&G, Artemis, and Schroders were all set to vote against the transaction if last Wednesday’s vote had gone ahead.

The board of G4S will now look at the role played by Deutsche Bank and RBS Hoare Govett in the run-up to the announcement of the deal, it is understood.

The financial advisers last week came under fire from investors frustrated at the way the transaction was handled, as they feel they were given too little time to consider the deal.

It has been said that the review is likely to focus in part on the motives of some institutional shareholders who showed support following pre-marketing meetings by offering to sub-underwrite the deal, which was taken as a nod of approval by advisors.

G4S was unavailable for comment.