Lucky escape

14 October 2020 By Dasha Afanasieva Follow @dasha_reuters

Canada’s GardaWorld made a 3 bln pound hostile bid for the mishap-prone security group. U.S. rival Allied Universal is also interested. Either could pay over 4 bln pounds and earn a decent return, Breakingviews calculations show. Shareholders can hold out for a higher offer.

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Outsourcing and security firm G4S on Oct. 14 said group revenues were 2% lower in the first nine months of the year, compared to the same period of 2019. The group’s underlying earnings for the period were higher year-on-year, thanks to cost control and lower interest rates.

The London-listed company on Oct. 9 confirmed it had received an expression of interest from Allied Universal Security Services, regarding a possible offer for the company.

On Sept. 30, Canadian company GardaWorld Security announced it had made an offer of 190 pence per share, valuing the company’s equity at 2.95 billion pounds.

G4S shares rose 6% on Oct. 9 to 214 pence. They were trading at 209 pence at 0707 GMT on Oct. 14.

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