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EQT-led consortium's offer for Securitas Direct may undervalue company16/11/2007. Source: AltAssets. 
 The SEK9.6bn ($1.5bn) bid for security services business Securitas Direct by a consortium led by Swedish private equity firm EQT is under pressure from US hedge fund investors who own stakes in the company. They claim that the SEK26 ($4.12) per share offer undervalues the company, according to Financial Times and Real Deals.
The hedge fund investors include Pennant Capital and Royal Capital Management. They reportedly argue that the current valuation of the company is influenced by high up-front costs incurred when signing up new customers, and that they are unhappy about SEB advising Securitas Direct on a possible transaction because both EQT and SEB are linked to the influential Wallenberg family.
The EQT-led investor group also consists of listed investment firms Säkl, Melker Schoerling and Investment Latour, all three of which already own interests in Securitas Direct. The consortium is making its offer via an acquisition vehicle called ESML Intressenter. The €4.25bn EQT V fund has bought a 64 per cent stake in ESML Intressenter.
Securitas Direct spun out of Securitas in 2006. Securitas Direct provides services to small firms and private homes.
Copyright © 2007 AltAssets
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