Canadian firm GardaWorld has extended its takeover bid for G4S, even as the British company has already accepted US-based Allied Universal’s takeover offer.
Yesterday Allied Universal extended the time for G4S shareholders to accept the deal, which has been agreed upon by the two companies, to 9 February.
G4S said GardaWorld’s announcement does not change the board’s recommendation that the company’s shareholders accept Allied’s offer of 245 pence per share.
Private-equity backed GardaWorld has extended its offer to Feb. 10.
G4S in December agreed to a takeover by Allied Universal, picking the U.S. company over Canadian rival GardaWorld after a two-month long bidding war. It had rejected GardaWorld’s offer of 235 pence per share in favour of Allied’s bid, which was 10 pence higher.
At the time GardaWorld was said to be considering its options.
G4S’s deal with Allied Universal will incorporate a new company, Allied Bidco, that will be indirectly controlled by Allied Universal. The combination of Allied Universal and G4S will create a security business with revenues of approximately $18bn, should the deal go ahead.
GardaWorld has been making offers for G4S for months. The Canadian firm, which is significantly smaller than G4S, has raised the price of its bid four times since first approaching shareholders about a potential buy in the summer.
The dogged pursuit has at times descended into acrimony, with both sides seeking to convince shareholders of the weaknesses of the other.
Throughout, the G4S board has remained adamant that Gardaworld’s offers have “significantly undervalued” the firm, which provides services such as prison management.
Recently Gardaworld chief executive Stephen Crétier said: “[G4S] Shareholders have a simple choice: remain invested in a company which has consistently failed them and the wider community for so many years, or realise their investment in cash, at a significant and highly attractive premium.”
Gardaworld even hit out at Allied Universal last month, after it revealed to also be in talks with G4S.
“Unlike other real or imagined bidders, our financing is agreed, our offer is a matter of public record and our intent is serious,” Crétier said in a statement.