Oct. 31 (Bloomberg) -- G4S Plc is under pressure to build investors’ support for its planned acquisition of Danish cleaning-services company ISS A/S after Harris Associates LP joined other shareholders in denying backing for the deal.
“Despite the fact we have a great deal of respect for Nick Buckles and the G4S management team, we can not support the acquisition of ISS under the stated terms and have voted no,” Harris Associates Chief Investment Officer David Herro said in an e-mailed statement posted on the company’s website today.
Herro joins the opposition of investors including Parvus Asset Management, which said the purchase of ISS for $8.2 billion in equity and debt is too risky. G4S announced the planned purchase on Oct. 17, resulting in a record 22 percent stock drop of its stock that day.
G4S is holding an extraordinary shareholder meeting in two days as part of the planned purchase, and the Crawley, U.K. based company is going ahead with the meeting, it said today. Chief Executive Officer Buckles wants to add ISS to build a service company that combines security and office cleaning in a single contract.
Harris Associates LP is among G4S’s largest shareholders, with a stake of about 4.9 percent, according to data compiled by Bloomberg
--With assistance from Brett Foley in London. Editor: Benedikt Kammel
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