Recruitment firm snubs takeover

Recruiters are seeing a slowdown in some sectors such as finance

Recruitment firm Michael Page has snubbed an approach from rival Adecco about a possible £1.3bn takeover.

The firms had held talks, with Adecco - the world's largest staffing group - later tabling a proposal worth 400 pence per share.

However, the Michael Page board decided that the offer undervalued the company.

A follow-up approach, which would see Swiss group Adecco taking a controlling stake in Michael Page, was also rejected.

"Although further talks have taken place with Adecco and its advisers, Adecco has not increased the level of its offer," it said.

"Accordingly, the board of Michael Page announces that it is ending discussions with Adecco."

Shares in the firm, which had leapt by 30% when news of Adecco's interest was first announced, fell by 1.5% to 330p on Friday's news.

Slowdown

Launched in 1976, Michael Page opened its first overseas office in Australia in 1985.

It now operates in 28 countries worldwide, employing more than 5,000 staff - including about 1,850 people in the UK.

Its UK business makes up about a third of overall profits - although growth slowed markedly due to a drop in recruitment in the financial sector.

However stronger growth in mainland Europe, Asia-Pacific and the Americas meant overall profits climbed by 26% to £152.4m between April and June.

Adecco has 7,000 offices in 60 countries. It was formed in 1996 following the merger of Swiss firm Adia and Ecco of France.