Danish services company ISS has gained operational control over the UK's RCO but will have to pay over £3m more than its original bid (see News story 15 May) for full ownership.

ISS Europe A/S ("ISS Europe") acquired an additional 46.4% of the shares in RCO Holdings plc last Thursday, and a further 17.4% on Friday now controls 77.1% of the entire issued share capital. The additional shares were purchased at 280 pence. The London Stock Exchange take-over rules require ISS Europe to make an unconditional offer to all remaining shareholders of RCO at the same price.

The original bid was 247p per share, valuing RCO at around £26.5m. At the new price, the acquisition will cost ISS £29.8 million. Waldemar Schmidt, Chief Executive Officer of ISS, said that other parties were interested in RCO, "We have now obtained operational control over RCO and it is still our intention to gain full ownership of the company. We are pleased that we have now reduced the instability in RCO's ownership."

• ISS reported continued strong growth in the first quarter of this year, with both turnover and operating profit up 65%. Much of the growth in sales came from acquisitions - ISS has bought 18 companies in the first five months of this year. The company expects both turnover and operating profit to grow by more than 30% this year.
  

Richard Byatt