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Monday, 13 May, 2002, 12:35 GMT 13:35 UK
Securitas halts Chubb merger
Wallet being locked shut
Chubb: Merger ambitions foiled
The prices of shares in British lockmaker and security specialist Chubb has slumped after Swedish rival Securitas pulled out of merger talks.


This deal is closed now, but we talk to many others in the market

Thomas Berglund, Securitas chief executive
Securitas said on Monday it was halting merger negotiations on the grounds that the deal would not be "financially attractive" to either company's shareholders.

Securitas added that it had no plans to launch a hostile bid for its British rival.

The announcement pushed Chubb stock nearly 15% lower to 178p, offsetting a sharp rise on Friday after news of the potential tie-up first broke.

Near miss

Talks between the two companies had been under way for about 18 months, with an agreement rumoured on Friday to have been just weeks away.

A sharp rise in Chubb's share price, making the company more expensive to acquire, was one obstacle to the mooted tie-up with Securitas.

Securitas chief executive Thomas Berglund said the company was on the lookout for alternative merger partners.

"This deal is closed now, but we talk to many others in the market," Mr Berglund said.

In Stockholm, Securitas shares climbed more than 5%.

Secure

Chubb, best-known for its locks, has in recent years expanded into electronic surveillance and alarm equipment.

Last year, it racked up sales of 1.4bn worldwide.

Securitas, with 140,000 employees and annual sales of more than 2.4bn, is one of the largest security services firms in the world.

See also:

10 May 02 | Business
Chubb locked in takeover talks
15 Feb 02 | Business
Surviving the jokes: Group 4 Falck
29 Aug 01 | Business
Euro launch lifts security firms
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