G4S PLC (LON:GFS) looks destined to be taken over by US peer Allied Universal after rival bidder GardaWorld refused to raise its offer from 235p per share.
Allied Universal’s offer is worth 10p per share more at 245p while the board of FTSE 250 security and guarding group G4S has consistently and vociferously argued against a takeover by GardaWorld.
In order to bring the bid battle to a conclusion, the UK’s Takeover Panel ordered the two groups enter a daily sealed bid auction starting today to determine the outcome.
GardaWorld’s decision, though, effectively ends that process.
In a statement, the Canadian group said that “priced above 235 pence per share, there are better and less risky opportunities available.”
In a final parting shot, Stephan Crétier, GardaWorld’s chief executive, added: “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 issues that continue to come to light.
“GardaWorld has the skills, expertise and ambition to take on the challenges that G4S faces.
“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.”