* GardaWorld withdraws no-increase statement for G4S (CSE:G4S)
* Canadian firm says it is considering options
* G4S says announcement does not change intention to recommend Allied offer (Adds comment from G4S)
Dec 9 (Reuters) - Canada's GardaWorld on Wednesday gave itself the option of increasing its bid for G4S GFS.L after the British security company agreed a 3.8 billion pound ($5.10 billion) takeover with a rival.
G4S on Tuesday agreed to a takeover by Allied Universal, picking the U.S. company over Canadian rival GardaWorld after a two-month long bidding war. It had rejected GardaWorld's offer of 235 pence per share in favour of Allied's bid, which was 10 pence higher. said it had withdrawn a no-increase statement in relation to its G4S offer price.
G4S said that GardaWorld's latest announcement did not change its intention to unanimously recommend Allied Universal's offer. in G4S, one of the world's largest private security companies, hit their highest level since Aug. 18 earlier on Wednesday. They were up 0.4% at 256.2 pence at 1511 GMT.
Some analysts expect GardaWorld to raise its bid for G4S, but they also said Allied Universal should have more cost synergies given its greater geographic overlap with G4S.
"Our sense from reading all of Garda's documentation in recent months is that it strongly wants to acquire G4S. A further bid from Garda could maybe prompt a raised offer from Allied," Panmure Gordon analyst Robert Plant said.
GardaWorld also said that G4S shareholders who had already accepted its latest offer would have the right of withdrawal for a period of eight days, starting Wednesday.
($1 = 0.7457 pounds)
<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^ BREAKINGVIEWS-GardaWorld opens door for G4S escape