I am happy with the way matters are moving here.

G4S says held supportive meetings with shareholder
15:30, Sunday 23 October 2011

LONDON (Reuters) said it had received positive feedback from shareholders over its proposed 5.2 billion pounds bid for ISS and Chief Executive Nick Buckles expressed surprise over the fall in the company's share price.

"We have had some good supportive meetings and are working hard to talk with investors about the rationale and significant benefits and our belief in this transaction," a G4S spokesman told Reuters on Sunday.

Shares in G4S lost over 20 percent of their value on Monday after it said it would buy the Danish support services company -- partly due to the dilutive impact of a proposed 2 billion pounds rights issue to help fund the deal.

In an interview with the Sunday Times, G4S's Chief Executive Nick Buckles said the share price reaction had been a shock.

"I knew the size and scale of the deal would surprise the market but we thought it would be received really positively," he said.

Since the offer was announced, G4S, which is the world's biggest security company, has faced a backlash from some shareholders who have objected to the strategy and financing behind the deal.

Aside from balking at the size of the rights issue, the biggest equity fundraising in Britain since a 3.4 billions pound cash call by Standard Chartered (Xetra: 859123 - news) last November (Stuttgart: A0Z24E - news) , some shareholders have raised concerns over G4S moving away from its security services roots into areas such as cleaning and catering.

Buckles told the Sunday Times he had "pre-briefed" key shareholders the week before the deal was announced and still believes he has their approval.

"I just think people felt they had to take a view very quickly on Monday, but this is one to digest slowly. It's early days. We still have investors to see," he said.

The Sunday Times also reported that Institutional Shareholder Services, a governance body that advises 1,700 large investors, had recommended shareholders vote against the deal at a general meeting on November 2.

The shareholder body said the deal was a departure from G4S's strategy to focus on small deals in emerging markets and raised concerns about integrating the two big companies and the level of debt that G4S would be left with.

G4S told Reuters on Sunday it had not held meetings with Institutional Shareholder Services and therefore had not been able to brief them on strategy.

"They have not met the company, they have not heard their strategy and there are factual inaccuracies in the report," the G4S spokesman said, adding that the company had previously said it would look at large and transformational deals.

Investors told to block G4S Danish deal


James Hurley, 20:26, Sunday 23 October 2011

A major investors' advisory group is the latest dissenting voice to join growing shareholder opposition to G4S (Other OTC: GFSZF.PK - news) 's planned 5.2bn takeover of Danish cleaning and catering company ISS.

US-based Institutional Shareholder Services, which advises 1,700 large investors, has voiced concerns that the deal would represent a departure from the security giant's strategy of focusing on small tactical deals in emerging markets, as previously set out by G4S chief executive Nick Buckles. The governance body also highlighted the risks of integrating 1.1m staff across 100 countries and the debt burden the deal would put on G4S's balance sheet

good stuff dc - i am told one of the main concerns is the fact t/o means that gfs will strategically be concentrating on the west rather than rest of the world - this has investors concerned with current econ. climate - investor also annoyed they will be taking on debt and moving to non core areas - i personally looking forward to tomorrow here as will be very interesting imo - gl

G4S investors still concerned over 5.2bn Iss deal


Danish investors in security group G4S (Other OTC: GFSZF.PK - news) remain concerned about its proposed 5.2bn acquisition of ISS despite the security firm's chief executive Nick Buckles flying out for crunch talks.

Mr Buckles gave a presentation to investors and analysts on Monday about the controversial deal, which is being funded by a 2bn rights issue and new 3.7bn debt facility.

BankInvest, which owns roughly 0.25pc of G4S, said it has already cast its proxy vote against the deal, while Carnegie Asset Management and Nykredit Asset Management are also opposing the proposal, according to reports in Denmark. Carnegie has said the strategy behind the deal is "hard to understand".

Danish investors hold more than 10pc in G4S, which was created by the merger of Securicor and Scandinavian Group 4 Falck in 2004. G4S needs 75pc of voting shareholders to support the deal in a meeting next week but the deal is in doubt because of concerns G4S will struggle to integrate ISS and will be left with a cumbersome debt pile.

Analysts at Scandinavian bank Enskilda said on Tuesday they were "sceptical" about the impact ISS will have on G4S's margins.

A spokesman for G4S said the company has held "constructive" meetings with shareholders.

G4S plc UK DK
Statement re agreement not to proceed with acqu...





1 November 2011

G4S AND FS INVEST AGREE NOT TO PROCEED WITH
ACQUISITION OF ISS AND RELATED RIGHTS ISSUE

G4S plc ("G4S") announces that G4S and FS Invest II S..l. ("FS Invest") have
agreed to terminate the share purchase agreement ("SPA") pursuant to which G4S
was to acquire ISS A/S ("ISS") from FS Invest (the "Acquisition"). Accordingly,
the board of directors of G4S (the "Board") will not put any resolutions to the
shareholder meeting convened for 2 November 2011 and will not be proceeding with
the rights issue or other financing required for the Acquisition.

Alf Duch-Pedersen, Chairman of G4S, said:

"We believe that developing our business towards an enhanced security and
integrated facilities services model is the way forward in the longer term and
we saw ISS as an excellent opportunity to achieve this aim. However, following
the announcement of the Acquisition, shareholders have raised concerns
particularly over its scale and perceived complexity against the backdrop of
current macro-economic uncertainty.

We consulted our leading shareholders ahead of announcing the transaction, and
based on the feedback received, felt confident to launch the deal. We have now
discussed the merits of this combination with a significantly larger number of
our shareholders and whilst they continue to express their overwhelming support
for the standalone G4S business and its management, the Board has listened
carefully to concerns raised by shareholders regarding the Acquisition and has
concluded that in the circumstances it is inappropriate to proceed.

G4S is a successful and well managed business. It has delivered year on year
earnings and dividend growth since the group was created in 2004 from the merger
of Securicor and Group 4 Falck. G4S has consistently generated returns on
invested capital well above its cost of capital, and delivered average
shareholder returns of 13.3% per year since the start of 2005.

The Board and management of G4S remain focused on continuing to generate
sustainable shareholder value and driving business success both organically and
through targeted acquisitions."

Nick Buckles, Chief Executive of G4S, said:

"We are obviously disappointed that we have not been able to complete this
transaction. We felt strongly that the combination of G4S and ISS would create
a market-leading integrated security and facilities services company which would
be well placed to meet the growing needs of customers and deliver significant
investment returns at the same time.

However, we respect the importance of shareholders' views and, on the basis of
feedback received since the transaction was announced, we have decided not to
proceed.

Our strategy will continue to focus on providing higher value, integrated
security solutions to our customers and leveraging our expertise in key sectors,
geographies and service lines. We will continue to acquire businesses which add
capability to G4S to help drive the business forward.

The G4S business continues to develop positively with organic growth of 5% in
the first nine months of 2011."

The Acquisition, together with the rights issue, was conditional, inter alia, on
securing 75% shareholder support at a G4S shareholder meeting. There are no
break fees payable pursuant to the termination of the SPA. The majority of the
fees and costs to be paid in connection with the Acquisition and the rights
issue was only payable if the Acquisition completed. However certain of these
fees and costs, amounting to approximately 50 million, will be incurred by G4S
in any event. These fees relate principally to commitment fees in connection
with the financing of the Acquisition, but also include the net costs of
derivative hedging instruments entered into to hedge the foreign exchange risk
associated with raising funds in sterling to effect a purchase in Danish Krone
and up to 2 million payable to ISS's auditors in relation to certain work
carried out in respect of the Acquisition. These fees and costs will be treated
as exceptional items in the G4S accounts for the year ended 31 December 2011.

Board of directors has just cost shareholders 50m should they be fired?

Graham Ruddick, 18:16, Tuesday 1 November 2011

Nick Buckles knew his "market-changing" 5.2bn takeover of ISS was in trouble on the same day the deal was announced.

The G4S chief executive revealed the proposed acquisition on the morning of Monday, October 17. Buckles thought he had the backing of his leading shareholders after "positive" feedback from pre-marketing. Several institutions had even agreed to sub-underwrite the 2bn rights issue that would finance the deal, he was told.

However, when G4S (Other OTC: GFSZF.PK - news) shares slumped by 22pc it was clear all was not well. Advisers to the company claimed it was simply a technical repricing to reflect the deeply discounted rights issue. In reality, the City was in shock. "It became an uphill struggle from there," Buckles said on Tuesday.

For many investors, the security group had been a safe haven stock that had outperformed the market even during the recession. However, spending 5.2bn on a cleaning and catering group with 2bn of new shareholder money and 3.7bn of debt would create a radically different company.

Not only would G4S no longer be focused on security, but it would become one of the most highly leveraged companies in the FTSE 100 (Euronext: VFTSE.NX - news) . That was not the G4S (Dusseldorf: GHN.DU - news) that investors bought into.

During pre-marketing on the previous Thursday and Friday, Buckles tried to convince his 12 largest investors that G4S needed to do the deal because its customers increasingly wanted a wider range of services from its contractors.

However, these "briefings" lasted less than an hour and some were held over the phone. The shareholders say they were simply given a preview of an announcement that was ready to be made, and did not have enough time to digest the acquisition. Although many would need time to establish their opposition to the deal, they were already frustrated, surprised and uncomfortable at the way it had been presented.

One top 20 shareholder said: "It's like buying a flat for your girlfriend and then asking whether she likes it. Even though she will be paying for it."

Another said: "We are the owners of the business, not the investment banks. They trusted the investment bankers more than the shareholders and that is stupid."

The drop in the share price revealed the concerns but also spooked the institutions who had been willing to support it. Opposition became widespread. As well as the surprise strategic shift amid economic uncertainty, investors had doubts about the price being paid to the private equity owners of ISS and whether G4S could integrate a business that would have 1.2m employees around the world.

Privately and publicly, Kames Capital is the only leading shareholder to have confirmed it would have supported the deal. By the time G4S cancelled the shareholder vote on the deal on Tuesday, it was facing a landslide defeat.

"We clearly regret that we misread the market's appetite for deals of this scale," Buckles sad.

A top five City shareholder in G4S says Buckles should have approached it earlier about the deal and it would have agreed to not trade shares in the company. The investor would have urged Buckles to "revisit" the proposals before they were even made public, potentially saving G4S the embarrassment of the deal unravelling in front of the City. "It is not impossible that they could buy bits of ISS. Some bits of the business are very good. But the size and totality of it [the deal] was the problem," they added.

Buckles claims he was advised that approaching the shareholders just days before the announcement was "best practice". Meanwhile, the advisers to G4S Deutsche Bank, Greenhill (Xetra: A0B9GF - news) and RBS (LSE: RBS.L - news) are frustrated that institutions backtracked from their positive feedback during pre-marketing. A G4S source claims "several institutions" handed over letters saying they would sub-underwrite the rights issue. "There is something to learn for everyone from this," the source said.

Those lessons add to the ones garnered from the failed Prudential (LSE: PRU.L - news) and AIA deal last year. G4S investors have again demonstrated that management and shareholders must engage properly, particularly if the investors are being asked to stump up fresh cash.

However, it is doubtful that Buckles could ever have persuaded shareholders against their view that the ISS deal was an unproven strategic shift that asked too much of them. His strong track record at G4S was no match for the scepticism of shareholders, which was exacerbated by volatile global stock markets. The one consolation for Buckles is that his prior track record is likely to ensure he keeps his job.

ahhhh - buckles made a bit of a hash of it all!! apparently today he said he considered his job was safe - the other funny thing in this debacle was that iss actually ended up voting against iss i.e. itself LOL! still opportunity to make some good splosh greatly received thanks bucky - and this news obviously will not do gfs any harm

G4S ticked up 3.6 to 266.4p as Credit Suiss upgraded the stock to "outperform" with a 310p price target. "We expect organic growth will accelerate to 9pc in 2012," said Credit Suisse.

..London 2012 Olympics: G4S interviewing 84,000 candidates

By Graham Ruddick | Telegraph – 2 hours 2 minutes ago


......
G4S (Other OTC: GFSZF.PK - news) says it is interviewing 84,000 candidates for its Olympic security contract.

The FTSE 100 security group is looking to hire around 10,000 temporary workers, with 2,500 already in place, to provide security at the Olympic Park in London during the Games this week.

The contract is worth around £200m to G4S, which will need to vet and train all the workers before London 2012.

Nick Buckles, chief executive, said: "This is a very large undertaking. It's a tough challenge but we have a strong management team in place."

The Olympic contract will boost organic revenue growth for G4S by 2pc to 3pc this year. In a trading update yesterday, Mr Buckles said G4S had grown revenues by 6.7pc in the first quarter of 2012 aided by the Olympics and 11pc growth in developing markets.

However, despite the revenue growth, profits for G4S will only be at "similar levels" to 2011. This is because margins have shrank due to spending cuts in the US and as G4S has won new UK contracts, such as providing security for Royal Bank of Scotland (LSE: RBS.L - news) branches, with higher initial costs.

Mr Buckles said he was "pleased" with the company's increase in revenues and said margins should improve in the second half of the year.

He added: "Based on recent contract awards, outsourcing trends and the group's bid pipeline, the organic growth rate is expected to continue to improve during 2012."

Shares in G4S rose 9.2 to 276p.

..

A bit of a no brainer if you were quick this morning.

260 would be nice!

And there it is! :-)

Statement regarding the Olympic Games Security Contract

I might let this run a bit longer.

G4S Olympics staff failed to arrive for security work

Only 17 of an expected 56 G4S staff turned up for work at an Olympic team hotel in Salford, the chairman of the Greater Manchester Police Authority has said.

As a result, the force has pulled in front-line officers to provide security, Paul Murphy revealed.

Home Secretary Theresa May will answer questions about G4S problems later.

Parliament Live

Little hope if Connelly new chairman does not stand by Buttons.
After all Connelly's old firm Deloittes did a review of the contract and gave advice. One assumes Connelly knew this before taking up appointment.

Buttons needs support at a time like this and Connelly should offer positive help and talk it up. Perhaps Agius could help here! If Buttons has to go then Connelly must too.

Stopped out @245 +36 - a bit surprised this hasn't fallen further this morning.

Update on Olympic Games Security Contract


G4S notes the announcement today that Ministers have decided to mobilise the
additional 1,200 troops which had previously been put on standby in order to
supplement the security workforce deployment for the Olympic Games. The
security of the Games is the primary focus and therefore we understand the
decision by Ministers to activate the additional contingency resource as a
further precaution at this stage of the process.

We have made very good progress in the last few days and, in line with the
revised deployment plan submitted to LOCOG, currently have around 5,800 security
personnel deployed at Olympic venues. Significant numbers of candidates are now
reaching the final stages of the training and accreditation process each day and
we are working hard to ensure that we deliver on the commitments we made to
LOCOG last week.

We are grateful to the military for their support in securing the Olympic and
Paralympic Games and will continue to work with them and LOCOG to ensure that
the Games are safe and secure.

As we have announced previously, G4S has undertaken to cover the additional
costs relating to the military deployment and believes that, including the
deployment of the additional 1,200 troops, the overall losses to be incurred on
the contract will remain within the previously stated estimate of GBP35m - GBP50m.

I see these are creeping up again - any views on whether when the dust of the Olympic "euphoria" is over, these will tank again?

INVESTMENT EXTRA: Can G4S get back into the game after Olympic security fiasco?


http://www.thisismoney.co.uk/money/markets/article-2183347/INVESTMENT-EXTRA-Can-G4S-game-Olympic-security-fiasco.html