Security firm G4S has urged shareholders to block a hostile takeover by Canadian rival Garda World after its bid was published. 

Garda set out its plans in detail in a statement on Saturday, sticking by its offer price of 190p per share despite G4S’s claim it undervalues the company. 

It also emerged that lawyers, PRs and bankers working for Garda stand to make £312m in fees if the deal goes ahead. 

Hostile bid: Garda set out its plans, sticking by its offer price of 190p per share despite G4S's claim it undervalues the company

Hostile bid: Garda set out its plans, sticking by its offer price of 190p per share despite G4S's claim it undervalues the company

Hostile bid: Garda set out its plans, sticking by its offer price of 190p per share despite G4S’s claim it undervalues the company

The formal offer prompted a robust statement from G4S, recommending that shareholders ‘reject the offer and take absolutely no action’. 

The firm’s board said Garda’s takeover was ‘highly opportunistic’ and the smaller rival wanted to acquire G4S to realise its global ambitions. ‘This should not be at the expense of G4S’s shareholders and other stakeholders,’ it said. 

It pointed to Garda’s debt mountain and annual losses over three years. G4S’s shareholders vote on the proposal on November 7. 

G4S shares, which were trading at 145p before Garda announced its interest, stood at 209p at Friday’s close. Garda could face competition, with Allied Universal reportedly expressing interest. 

#fiveDealsWidget .dealItemTitle#mobile {display:none} #fiveDealsWidget {display:block; float:left; clear:both; max-width:636px; margin:0; padding:0; line-height:120%; font-size:12px} #fiveDealsWidget div, #fiveDealsWidget a {margin:0; padding:0; line-height:120%; text-decoration: none; font-family:Arial, Helvetica ,sans-serif} #fiveDealsWidget .widgetTitleBox {display:block; float:left; width:100%; background-color:#af1e1e; } #fiveDealsWidget .widgetTitle {color:#fff; text-transform: uppercase; font-size:18px; font-weight:bold; margin:6px 10px 4px 10px; } #fiveDealsWidget a.dealItem {float:left; display:block; width:124px; margin-right:4px; margin-top:5px; background-color: #e3e3e3; min-height:200px;} #fiveDealsWidget a.dealItem#last {margin-right:0} #fiveDealsWidget .dealItemTitle {display:block; margin:10px 5px; color:#000; font-weight:bold} #fiveDealsWidget .dealItemImage, #fiveDealsWidget .dealItemImage img {float:left; display:block; margin:0; padding:0} #fiveDealsWidget .dealItemImage {border:1px solid #ccc} #fiveDealsWidget .dealItemImage img {width:100%; height:auto} #fiveDealsWidget .dealItemdesc {float:left; display:block; color:#004db3; font-weight:bold; margin:5px;} #fiveDealsWidget .dealItemRate {float:left; display:block; color:#000; margin:5px} #fiveDealsWidget .footerText a:hover{text-decoration: underline;} #fiveDealsWidget .footerSmall{font-size:10px; padding-top:10px;} @media (max-width: 635px) { #fiveDealsWidget a.dealItem {width:19%; margin-right:1%} #fiveDealsWidget a.dealItem#last {width:20%} } @media (max-width: 560px) { #fiveDealsWidget #desktop {display:none;} #fiveDealsWidget #mobile {display:block!important} #fiveDealsWidget a.dealItem {background-color: #fff; height:auto; min-height:auto} #fiveDealsWidget a.dealItem {border-bottom:1px solid #ececec; margin-bottom:5px; padding-bottom:10px} #fiveDealsWidget a.dealItem#last {border-bottom:0px solid #ececec; margin-bottom:5px; padding-bottom:0px} #fiveDealsWidget a.dealItem, #fiveDealsWidget a.dealItem#last {width:100%} #fiveDealsWidget .dealItemContent, #fiveDealsWidget .dealItemImage {float:left; display:inline-block} #fiveDealsWidget .dealItemImage {width:35%; margin-right:1%} #fiveDealsWidget .dealItemContent {width:63%} #fiveDealsWidget .dealItemTitle {margin: 0px 5px 5px; font-size:16px} #fiveDealsWidget .dealItemContent .dealItemdesc, #fiveDealsWidget .dealItemContent .dealItemRate {clear:both} }

This post first appeared on Dailymail.co.uk

You May Also Like

Millions of Brits face higher council tax threat as Hunt must ‘think the unthinkable’ to end inflation crisis

MILLIONS of Brits could be hit with higher council tax bills as…

Shoppers plead for return of supermarket giant’s ‘amazing’ Dr Pepper dupe after it disappears from shelves

ALDI shoppers are begging for the return of a popular soft drink…

London Stock Exchange hosts launch of Sharesoc’s Investing Basics

ShareSoc’s Investing Basics videos were launched at the London Stock Exchange Individual…

Budget 2021 latest news: Rishi Sunak could announce 30p hike on beer & NO VAT cut to household energy bills tomorrow

Minister defends budget briefings (continued…) Mr Clarke’s remarks came after a fresh…