Adecco abandons bid for Michael Page
Adecco, the world's largest staffing company, said on Tuesday it would not make an offer for Michael Page, sending shares in its British rival down by over 30 percent.
Global Radio increases bid for GCapAdecco's announcement brought to an end a takeover struggle that lasted several months. Shares in Michael Page were off 27.4 percent at 233.5 pence at 0730 GMT. Adecco's shares were up 2.4 percent at 50.50 Swiss francs.
"The response from Michael Page and its advisers has indicated that a recommended transaction would not be achievable on terms satisfactory to Adecco," Adecco said in a statement.
Michael Page, which specialises in the professional staffing market, twice rejected as too low an offer from Adecco valuing it at 1.3 billion pounds, or 400 pence per share.
Michael Page repeated on Tuesday that Adecco's proposals materially undervalued the company and it would be better off remaining independent.
Adecco has a war chest of 1.4 billion euros and is looking to bolster is position in the high-margin professional and permanent staffing market.
"Adecco is focused on value-based management and considers acquisition targets with financial discipline. Accordingly, Adecco has concluded that it will not be able to agree a combination on terms acceptable to both Adecco and the board of Michael Page at this time," Adecco said.
The Swiss group said it reserved the right to make an offer for Michael Page within six months if it reached an agreement with the British group's board or if a third party made an offer for Michael Page.
Normally, under British takeover law, a company must not approach the target for six months after it decides not to make a bid.
(Reporting by Katie Reid; additional reporting by Matt Scuffham; editing by Sue Thomas)
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