(Alliance News) - London's Takeover Panel on Friday said it will put in place an auction procedure to resolve the ongoing saga to buy G4S PLC.
Last month, G4S agreed to be taken over by Allied Universal in a GBP3.8 billion deal, but the cash offer has been extended and remains open for acceptances until March 6.
GardaWorld's rival offer of 235p per share, valuing the London-listed firm at GBP3.68 billion, has also been extended and remains open for acceptances until March 6.
"On the basis that neither offeror has declared its offer final, such that either offer may be increased or otherwise revised, a competitive situation continues to exist," the Takeover Panel said.
It added: "In order to provide an orderly framework for the resolution of this competitive situation, and in the absence of any alternative auction procedure having been agreed between the parties, the Panel Executive has, after discussions with the parties, ruled that the auction procedure set out in Appendix 8 of the Code shall be applied and that 'Day 46' for these purposes shall be Saturday February 20, 2021."
As a result, assuming the situation is not resolved, the Panel said Day 1 will be February 22, which will be followed by five days of public bidding, ending on February 26.
Both Allied Universal and GardaWorld are allowed to bid in the first three days, but if only one makes an offer over that time, the other company has to make a bid on Day 4.
If neither company makes a bid by Day 4, the auction will end.
"Save for a revised offer announced in accordance with the auction procedure, neither offeror will be permitted to announce or to make a revised offer for G4S on or after 5.00pm on Saturday 20 February 2021," the Panel said.
The Panel explained: "The application of the auction procedure set out in Appendix 8 of the Code means that it is possible that the auction procedure may end in circumstances where the revised offers of each offeror are at the same price in cash."
It also noted the winning bidder may not change its bid price after the auction.
G4S, Garda World and Allied Universal have agreed to the terms of the auction procedure, the Panel noted.
Shares in G4S were 1.0% higher in London on Friday at 267.44 pence each.
By Paul McGowan; paulmcgowan@alliancenews.com
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