* Allied offers 245 pence per share, 10 pence above GardaWorld bid
* G4S (CSE:G4S) board intends to unanimously recommend Allied offer
* G4S shares closed 3.2% higher before announcement was made (Adds further G4S statement, background on GardaWorld bid)
By Pushkala Aripaka and Tanishaa Nadkar
Dec 8 (Reuters) - Security group G4S GFS.L on Tuesday agreed to be bought out by Allied Universal for 3.8 billion pounds ($5.1 billion), picking the U.S. company over Canadian rival GardaWorld and potentially ending a tense, months-long bidding war.
Allied's offer of 245 pence per share for London-listed G4S is 10 pence higher than GardaWorld's sweetened bid from last week, which pegged the British company at 3.7 billion pounds. one of the world's largest private security companies, had last month turned down what it termed a "highly conditional" offer from Allied Universal of 210 pence per share, while also repeatedly rejecting advances from GardaWorld. G4S Board is confident in the long-term prospects of the business and believes this (agreed) offer represents an excellent opportunity to create a leading global security company," G4S chairman John Connolly said in a statement. later formally confirmed that it had rejected the GardaWorld bid of 235 pence per share, saying it undervalued the company. British company has restructured its business following a series of setbacks, and the bidding war between the U.S. and Canadian companies for G4S began when GardaWorld made its offers for G4S public on Sept. 14. then, G4S shares had gained about 75% in value at Tuesday's closing price of 255.8 pence, before the deal was announced.
G4S said it considers the terms of Allied Universal's latest offer to be fair and reasonable and that it intended to unanimously recommend that shareholders accept it.
GardaWorld, which had another week left until its cut-off of Dec. 16 for shareholders to accept its offer, declined to comment on its further plans.
It had labelled its bid last week as a final offer but reserved the right to increase it if a rival made a firm offer.
Financial and legal advisers to G4S on the deal included Citi, J.P. Morgan Cazenove, Goldman Sachs (NYSE:GS), Lazard and Linklaters, while Allied Universal was advised by Morgan Stanley (NYSE:MS), Credit Suisse (SIX:CSGN), Moelis & Company, Cleary Gottlieb Steen & Hamilton, Freshfields Bruckhaus Deringer and Kirkland & Ellis.
($1 = 0.7503 pounds)