The number of shareholders expressing concerns about the security group’s plan to become the largest facilities services company in the world is growing, according to recent news reports.
The Sunday Telegraph says that two investment groups, Artemis and Schroders, are likely to vote against the deal this week.
G4S needs three-quarters of investors to back its acquisition of ISS but the newspaper says that level of support is looking unlikely. Another investment group, Parvus Asset Management, began expressing doubts almost as fast as the move was announced, and the worry appears to be growing. Concern centres on the scale of the deal and the prospect of G4S diluting its focus on its own core business.
The company continues to be positive about the acquisition, though it has conceded that some ISS operations may be sold off. A spokesman for G4S told the Sunday Telegraph: “We’ve held constructive meetings with shareholders and we’ll wait to listen to them at the vote on Wednesday.”