G4S hits back at Gardaworld over ‘misleading’ pension scheme claims
Outsourcing giant G4S has hit back at Gardaworld after the Canadian firm stepped up its attempts to take over its larger rival.
In a statement this morning, the FTSE 250 firm blasted the company over claims it made regarding the viability of G4S’ pension schemes.
Having had multiple offers to take over the firm rejected so far, yesterday Gardaworld said that it would begin meeting with key G4S stakeholders this week.
It said that the firm’s “own missteps” had been the reason for the collapse in G4S’ share price, and also said that there were “serious issues” with its pension scheme.
This morning G4S responded in kind, reiterating its rejection of Gardaworld’s 190p per share offer and questioning the security firm’s track record.
“Gardaworld’s record is one of a loss-making company which has reported net losses attributable to shareholders of $940m (£727.3m) in the past three years and it lacks the geographic coverage to be a truly global company.
“Gardaworld clearly needs a transformative acquisition in order to realise its aspiration to be a global company and this is simply not reflected in its offer of 190 pence per share”, it said.
The company added that statements about its pension schemes were “misleading”, saying it was both “well funded” and “well managed”, and that it had already agreed a funding plan with its trustees.
It concluded: “When assessing the value of G4S, what matters is the strength of the company’s current position, performance and its future prospects. The Board remains of the view that the Gardaworld offer of 190 pence per share significantly undervalues G4S and its prospects.”
Gardaworld said that it made the offer on an assessment of “the many immediate and longer term risks that are attached to the G4S business”.
In response to G4S’ comments, a spokesperson for Gardaworld said: “We said we would help shareholders ‘look under the hood’ and that is exactly what we will continue to do.
“G4S doesn’t appear to be enjoying the scrutiny. As we expect to demonstrate, the future for an independent G4S is not at all as the seven-year incumbent management team are painting it.”
G4S’ shares slipped into the red this morning, but are still trading at 201.20p.
Gardaworld’s relentless pursuit of G4S has seen it have two offers rejected already. In June, it first bid at 145p per share and then followed up with an improved 153p per share offer.
The firm is the largest privately owned security services firm in the world, and employs more than 102,000 people globally.
The firm, which is 51 per cent owned by private equity fund BC Partners, has repeatedly urged G4S shareholders to ask the board to enter into negotiations over a potential deal.