(Bloomberg) -- GardaWorld made a near 3 billion-pound ($3.8 billion) hostile takeover offer for rival G4S Plc after failing to convince management of the U.K. security-services company to come to the negotiating table.
The Canadian group will now seek meetings with investors to discuss the 190 pence-a-share proposal, and criticized G4S's board for having “behaved in a cavalier way” by rejecting an earlier approach.
“G4S is a deeply troubled business which needs a committed owner-operator team that understands the sector and has a definitive and comprehensive plan,” Garda Chief Executive Officer Stephan Cretier said in a statement on Wednesday. “Stakeholders can take no confidence in the promises of a senior management team that has been in place for seven years and has not delivered.”
G4S shares extended gains and traded 4.3% higher at 197.20 pence as of 12:21 p.m. in London.
The firm offer is at the same level as earlier proposals, which G4S shareholder Harris Associates has said were too low. New York-based Sachem Head Capital Management also values the British firm at more than 190 pence a share, people familiar with the matter said earlier this month, though the investor would consider backing a sale at a higher price, they said.
A combination of Garda and G4S would create a global security firm with more than 600,000 employees -- with about half a million coming from the latter company. The two firms provide guards to everything from airports to prisons and have operations around the world.
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