Bloomberg News

G4S to Proceed With Shareholder Vote on Planned ISS Acquisition

November 01, 2011

Oct. 31 (Bloomberg) -- G4S Plc said it will go ahead with its planned shareholder vote this week as it seeks investors’ backing for the purchase of Danish cleaning-services company ISS for $8.2 billion in equity and debt.

The company may reconsider the vote, the U.K. newspaper the Guardian reported yesterday, citing an unidentified person close to the Crawley, U.K. based company. G4S will gain a clearer picture of investors’ sentiment on the day of the vote as shareholders are voting right up to the planned EGM, a spokesman said by telephone today.

The world’s largest security company is facing resistance from some shareholders, including Parvus Asset Management, which said on Oct. 20 that the deal is too risky. G4S is targeting ISS to expand in cleaning services as it seeks to bundle office- upkeep and security into a single contract. G4S dropped 22 percent on Oct. 17, the day of the announcement

G4S Chief Executive Officer Nick Buckles has sought to sway investors and has travelled to the U.S. and Denmark to gain backing for the purchase. G4S fell as much as 4.1 pence, or 1.7 percent, to 242.5 pence and traded at 242.7 pence as of 10:24 a.m. in London, giving the company a market value of 3.42 billion pounds ($5.5 billion).

--Editor: Benedikt Kammel

To contact the reporter on this story: Sabine Pirone in London at spirone@bloomberg.net

To contact the editor responsible for this story: Benedikt Kammel at bkammel@bloomberg.net


Burger King's Young Buns
LIMITED-TIME OFFER SUBSCRIBE NOW

(enter your email)
(enter up to 5 email addresses, separated by commas)

Max 250 characters

 
blog comments powered by Disqus