G4S chief surprised by shares plunge

g4s said it had received positive feedback from shareholders over its proposed £5.2 billion 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 said yesterday.

Shares in G4S lost more than 20 per cent of their value on Monday after it said it would buy the Danish support services company – partly owing to the dilutive impact of a proposed £2 billion rights issue to help fund the deal.

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In an interview with a Sunday newspaper, Mr 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.