G4S advisers face axe after failed ISS deal

'Beauty parade' of big name banks chase lucrative roles with Olympic security group

The FTSE 100 security group G4S is set to replace its roster of corporate advisers and brokers this week as punishment for the embarrassing failure to buy the Danish cleaner ISS.

The chairman, Alf Duch-Pederson, this month announced that he is to quit after the £5.2bn proposal, which would have made G4S the world's biggest cleaning and security group with 1.2 million employees, failed to get shareholder support in November. However, the G4S board believes that it can only regain credibility by also axing some of the advisers on that deal.

Bank of America Merrill Lynch, JP Morgan, Jefferies and Citi will be among the firms pitching for highly lucrative broking and advisory roles next week. "Pretty much every bank in London will want to get on board with G4S," said one broker. "They're going to re-evaluate everything."

The existing brokers are Hoare Govett and Deutsche. Hoare Govett is unlikely to try to retain its position, given that its owner, Royal Bank of Scotland, is attempting to offload the firm. However, this will mean that Hoare Govett, one of the historic names in stockbroking, will be left with just seven FTSE 100 clients.

Deutsche, which is also a corporate adviser to G4S, is likely to make a case for its retention in both roles. The company's other adviser, Greenhill, is also expected to defend its position during this week's beauty parade.

G4S, which is providing security at London Olympics, has admitted that shareholders had been scared off by the size of the ISS deal. The board was looking to partly fund the move through a hugely discounted rights issue, which would have diluted the stakes of those shareholders not willing to cough up such vast amounts of cash.

Nick Buckles, who expressed his "regret" at the deal's collapse last year, has decided to focus on buying smaller companies. This would mean that G4S is unlikely to spend more than about £300m a year on takeovers.

Several investors blamed Mr Duch-Pederson for attempting to force through a deal at a volatile time for the economy.

In a statement earlier this month, the senior independent director, Lord Condon, said: "On reaching 65, and following the board's decision to terminate negotiations regarding the ISS acquisition, Alf Duch-Pedersen has informed the board of his intention to retire this year and we have reluctantly accepted his decision."

Start your day with The Independent, sign up for daily news emails
ebooks
ebooksA special investigation by Andy McSmith
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating
and  

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

SThree: HR Benefits Manager

£40000 - £50000 per annum + pro rata: SThree: SThree Group have been well esta...

Recruitment Genius: Office Manager / Financial Services

£30000 - £37000 per annum: Recruitment Genius: Established in 1999, a highly r...

Jemma Gent: Year End Accountant

£250-£300 Day Rate: Jemma Gent: Are you a qualified accountant with strong exp...

Jemma Gent: Management Accountant

£230 - £260 Day Rate: Jemma Gent: Do you want to stamp your footprint in histo...

Day In a Page

War with Isis: Fears that the looming battle for Mosul will unleash 'a million refugees'

The battle for Mosul will unleash 'a million refugees'

Aid agencies prepare for vast exodus following planned Iraqi offensive against the Isis-held city, reports Patrick Cockburn
Yvette Cooper: We can't lose the election. There's too much on the line

Yvette Cooper: We can't lose the election. There's too much on the line

The shadow Home Secretary on fighting radical Islam, protecting children, and why anyone in Labour who's thinking beyond May must 'sort themselves out'
A bad week for the Greens: Leader Natalie Bennett's 'car crash' radio interview is followed by Brighton council's failure to set a budget due to infighting

It's not easy being Green

After a bad week in which its leader had a public meltdown and its only city council couldn't agree on a budget vote, what next for the alternative party? It's over to Caroline Lucas to find out
Gorillas nearly missed: BBC producers didn't want to broadcast Sir David Attenborough's famed Rwandan encounter

Gorillas nearly missed

BBC producers didn't want to broadcast Sir David Attenborough's famed Rwandan encounter
Downton Abbey effect sees impoverished Italian nobles inspired to open their doors to paying guests for up to €650 a night

The Downton Abbey effect

Impoverished Italian nobles are opening their doors to paying guests, inspired by the TV drama
China's wild panda numbers have increased by 17% since 2003, new census reveals

China's wild panda numbers on the up

New census reveals 17% since 2003
Barbara Woodward: Britain's first female ambassador to China intends to forge strong links with the growing economic superpower

Our woman in Beijing builds a new relationship

Britain's first female ambassador to China intends to forge strong links with growing economic power
Courage is rare. True humility is even rarer. But the only British soldier to be awarded the Victoria Cross in Afghanistan has both

Courage is rare. True humility is even rarer

Beware of imitations, but the words of the soldier awarded the Victoria Cross were the real thing, says DJ Taylor
Alexander McQueen: The catwalk was a stage for the designer's astonishing and troubling vision

Alexander McQueen's astonishing vision

Ahead of a major retrospective, Alexander Fury talks to the collaborators who helped create the late designer's notorious spectacle
New BBC series savours half a century of food in Britain, from Vesta curries to nouvelle cuisine

Dinner through the decades

A new BBC series challenged Brandon Robshaw and his family to eat their way from the 1950s to the 1990s
Philippa Perry interview: The psychotherapist on McDonald's, fancy specs and meeting Grayson Perry on an evening course

Philippa Perry interview

The psychotherapist on McDonald's, fancy specs and meeting Grayson Perry on an evening course
Bill Granger recipes: Our chef recreates the exoticism of the Indonesian stir-fry

Bill Granger's Indonesian stir-fry recipes

Our chef was inspired by the south-east Asian cuisine he encountered as a teenager
Chelsea vs Tottenham: Harry Kane was at Wembley to see Spurs beat the Blues and win the Capital One Cup - now he's their great hope

Harry Kane interview

The striker was at Wembley to see Spurs beat the Blues and win the Capital One Cup - now he's their great hope
The Last Word: For the good of the game: why on earth don’t we leave Fifa?

Michael Calvin's Last Word

For the good of the game: why on earth don’t we leave Fifa?
HIV pill: Scientists hail discovery of 'game-changer' that cuts the risk of infection among gay men by 86%

Scientists hail daily pill that protects against HIV infection

Breakthrough in battle against global scourge – but will the NHS pay for it?