British security group G4S will hold talks with the City’s takeover panel, the Telegraph reported on Saturday, which could lead to a head-to-head auction between North American peers GardaWorld and Allied Universal for the company’s buyout.
Canada’s GardaWorld and U.S.-based Allied last month extended their buyout offer periods for G4S’s shareholders to accept their individual offers, even as the British company’s board had already accepted Allied’s takeover bid.
GardaWorld was in talks to raise more money to sweeten its last bid of 235 pence a share for G4S, the Telegraph reported here, citing City sources. Allied’s offer is 10 pence higher.
However, the Telegraph reported that the City expected GardaWorld to return well above Allied’s offer, with G4S shares having closed at 261.1 pence on Friday on the London Stock Exchange.
G4S has restructured its business following a series of setbacks, and the bidding war between the U.S. and Canadian companies for the firm began when GardaWorld made its offer for G4S public on Sept. 14.