Holly Williams MICHAEL Page Inter- national yesterday said it had rejected rival Adecco's attempts to buy the company with a deal valuing the business at £1.3bn.

Holly Williams

MICHAEL Page Inter- national yesterday said it had rejected rival Adecco's attempts to buy the company with a deal valuing the business at £1.3bn.

The recruitment firm said Adecco's advances "materially undervalued" the com-pany and that it had now ended discussions with the group.

Swiss firm Adecco first approached Michael Page in early May, putting forward a proposal to buy the firm at 400p-a-share, valuing it at £1.3bn.

Michael Page rebuffed its initial potential offer, but Adecco lodged a revised proposal earlier this week to become a majority shareholder, by buying a stake of at least 50.1% at a price that was "consistent" with its initial 400p-a-share price.

However, Michael Page said the second proposal also undervalued the group, adding the structure was unattractive for share- holders because they would become minority share- holders in a company controlled by Adecco.

It added: "Although further talks have taken place with Adecco and its advisers, Adecco has not increased the level of its offer. Accordingly, the board of Michael Page announces that it is ending discussions with Adecco."

The second approach, which would have seen Adecco take a controlling majority stake, was designed to mitigate some of the issues associated with combining "two people businesses with different cultures", according to Michael Page.

Under the plans, Michael Page would have remained listed on the London Stock Exchange and shareholders would have, in effect, been offered around 200p a share in cash in return for their shares being diluted.