G4S major shareholders agree Gardaworld offer is too low – report

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G4S PLC (LON:GFS) shares nudged higher on Friday after reports that its two biggest shareholders are prepared to listen to higher takeover offers from smaller rival Gardaworld.


Last month, Canada’s Gardaworld went hostile with a 190p per share cash offer, valuing the FTSE 250 security group at GBP3bn.


READ: G4S rebuffs GBP3bn hostile offer by Canadian rival GardaWorld


G4S rejected the bid, saying it “significantly undervalues” its prospects.


G4S shareholders Schroders and Harris Associates, which both own stakes of around 10%, agree the bid undervalues G4S but told the Times newspaper that they are prepared to hear from Gardaworld if it improves its offer.


The Canadian company, which is 51% owned by London-based private equity group BC Partners, made its offer directly to shareholders after accusing the G4S board of dismissing or ignoring three earlier attempts to engage in talks at the same price.



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