UPDATE 3-G4S upbeat but shares dip on placement move

(Adds analyst, updates share)

By Kim McLaughlin

COPENHAGEN, May 13 (Reuters) - Anglo-Danish security services firm G4S (GFS.L: Quote, Profile, Research) said on Tuesday its underlying performance was slightly ahead of management's expectations and that it was confident about its 2008 performance.

But shares in the world's top guard and security firm fell as investors digested the news it was placing up to 127 million new shares -- representing about 9.9 percent of issued ordinary share capital -- to reduce debt and expand through acquisitions.

By 1359 GMT, G4S shares were 5.5 percent lower at 226.75 pence, underperforming the FTSE .FTSE which was 0.32 percent off.

West Sussex-based G4S said in a statement the placing, worth about 300 million pounds ($587 million) at current share prices, would boost its capacity to make further acquisitions.

Deutsche Bank is placing agent and sole bookrunner in the placement, G4S said, adding it was expected to close on Tuesday, May 13.

"Security services is one of the sectors that is less dependent on overall economic development which is why G4S has a number of defensive characteristics that make it attractive in troubled times," Jyske Bank said in a note.

"The share has settled which is due to the placement," the Danish bank said, reiterating its "Accumulate" rating on the G4S share.