Bloomberg News

BankInvest Will Vote Against G4S’ Takeover of Goldman’s ISS

October 25, 2011

Oct. 25 (Bloomberg) -- BankInvest, a Danish asset manager which owns a 0.25 percent stake in G4S Plc, will vote against the security provider’s $8.2 billion takeover of ISS A/S at next week’s shareholder meeting, its stock portfolio manager said.

“I’ve already closed the envelope and mailed the proxies for the shareholder meeting to vote against,” Kasper Brix- Andersen said in phone interview from Copenhagen today.

Other Danish shareholders, including Carnegie Asset Management and Nykredit Asset Management also opposed the deal, newspaper Borsen reported today, citing their portfolio managers.

“We see a risk of negative synergies,” Brix-Andersen said. “Combining two service companies only allows cutting middle management and account managers, which are the ones who tie clients to the company.”

G4S Chief Executive Officer Nick Buckles needs at least 75 percent of shareholders to approve the purchase of ISS, the world’s largest cleaning service provider, at a Nov. 2 shareholder meeting.

Crawley, England-based G4S plans a 2 billion-pound ($3.2 billion) rights offer to fund the purchase. G4S is buying Copenhagen-based ISS from EQT Partners and Goldman Sachs Capital Partners for a total value of 5.2 billion pounds, of which 3.7 billion pounds is assumed debt.

--Editors: Christian Wienberg, Gelu Sulugiuc.

To contact the reporter on this story: Peter Levring in Copenhagen at plevring1@bloomberg.net

To contact the editor responsible for this story: Andrew Rummer at arummer@bloomberg.net


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