(Reuters) – Canada’s GardaWorld said on Monday it would not raise its offer for Britain’s G4S Plc further, appearing to leave the way clear for the higher bid lodged by rival Allied Universal to succeed after regulators ordered an auction to conclude the battle over the world’s largest security services company.
Allied has already bid 245 pence per share for G4S, whereas GardaWorld said that its earlier 235 pence offer was final and that it would not overpay. G4s stock closed at 269 pence on Friday.
G4S, which employs more than half a million people in 90 countries, did not immediately respond to a Reuters request for comment, while Allied was not available to respond outside of business hours.
“A successful integration of G4S, a 530,000-employee platform operating in 85 countries will require sizeable resources; addressing its issues will require greater investment and without satisfactory engagement from G4S we have been unable to complete our due diligence,” GardaWorld Chief Executive Officer Stephan Crétier said.
“There are better and less risky opportunities available to GardaWorld.”
Britain’s takeover regulator had stepped in to help resolve the battle for G4S by giving the North American bidders until Feb. 20 to make their final offers or go head-to-head in an auction starting Monday.
The move came after the suitors repeatedly extended their offer deadlines for G4S without making their offers final, thereby leaving room for revised bids.
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