Yahoo Finance US officials flag need for tougher scrutiny of G4S takeover
US state officials and unions have called for increased scrutiny of the potential takeover of G4S (GFS.L), in the latest chapter of a long-running acquisition battle.
The private-equity led bid for the UK security group has raised concerns that it could harm working conditions for security guards worldwide, according to the Financial Times.
The security firm employs about 530,000 employees across 85 countries, providing guarding to embassies, prisons and justice services, sports stadiums and music events.
Two private-equity backed bids are in contention and if either are successful the company would be one of the world’s largest privately owned employers.
In an online forum, elected Democrat Michael Frerichs urged investors to ask for greater transparency, noting that neither bidder had disclosed key aspects of their business plan.
READ MORE: G4S gets bid from US rival as it fends off £3bn GardaWorld takeover
G4S shareholders are yet to approve the deal, as Allied Universal and GardaWorld jostle for ownership. Its board recently recommended the 245p per share offer from Allied Universal but there could still be a higher offer in the pipeline.
Background to the deal
In November last year, G4S extended its hostile proposal deadline, after advances from Canadian GardaWorld were repeatedly rejected.
Shareholders in G4S were given three weeks to consider the 190p-a-share offer after the deadline was pushed from 7 November to 28 November.
At the time, the FTSE 250 (^FTMC) firm called GardaWorld’s approach “unattractive and opportunistic” adding it doesn’t reflect G4S’s values.
In September, GardaWorld — in which private equity firm BC Partners owns a 51% stake — went over the heads of the G4S board accusing the firm’s directors of refusing to engage after they dismissed a £3bn ($4bn) offer.
Subsequently, the Canadian firm turned to G4S’s shareholders putting the 190p offer directly to them.
Allied Universal Security services entered the fray as a potential suitor in October.
READ MORE: Canada's GardaWorld extends G4S £3bn bid deadline by three weeks
If it is sold, G4S will join other UK public companies which have been taken private. Cobham was acquired for £4bn by US firm Advent International in January 2020 and satellite company Inmarsat agreed a $6bn offer by a group led by Apax (APAX.L) and Warburg Pincus last year.
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