(Sharecast News) - Security services firm G4S confirmed on Tuesday that it had rejected a takeover offer from US rival Allied Universal.
G4S said it had received a highly conditional indicative offer at a price of "at least" 210p per share.
"The board carefully considered this proposal with appropriate advice from the company's financial and legal advisers and rejected it on the basis that the highly conditional offer, at 210p per share, significantly undervalues G4S and its prospects," it said.
G4S is currently in a hostile takeover battle with Canada's GardaWorld, which has offered 190p a share.
News that it had rejected an offer from Allied Universal was first reported by Bloomberg on Monday.
At 1205 GMT, G4S shares were up 4.5% at 213.70p.
Panmure Gordon, which maintained its 225p price target on the stock, said there was potential for higher offers.
It noted that both Allied Universal and GardaWorld are backed by private equity, so that may better placed to bid higher than pure security competitors.
3 Dec 2020 11:56
RBC downgrades G4S, calls GardaWorld bid 'fair'
(Sharecast News) - RBC Capital Markets has called GardaWorld's latest £3.7bn offer for G4S fair, as it downgraded its rating on the outsourcing giant.
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