LONDON, Oct 18 (Reuters) - British security company G4S
on Sunday recommended its investors reject the hostile
takeover offer sent to shareholders by Canadian rival GardaWorld
the previous day.
The offer document details a cash bid at 190 pence per
share, unchanged from when GardaWorld announced its intentions
on Sept. 14, prompting repeated rejections by G4S, one of the
world's largest private security companies.
"The board recommends that shareholders reject the offer and
take absolutely no action," G4S said in a statement.
G4S, which restructured its business after a series of
setbacks in recent years, says the bid from its smaller rival
significantly undervalues the company and its prospects.
Shares in G4S, which were trading at 145 pence before
GardaWorld announced its interest, stood at 209 pence at
GardaWorld, majority owned by buyout firm BC Partners, said
in its offer document that the cash bid would reward
shareholders' "patience with a business that continues to face
legacy challenges and future uncertainty".
"It is time to draw a line under G4S's past and give this
company a brighter future," said GardaWorld founder and CEO
G4S said early this month that U.S. rival Allied Universal
had expressed interest in making a counter offer.
(Reporting by Paul Sandle
Editing by David Goodman)