Investor backs Michael Page directors
Michael Page, the recruitment firm that received an approach this week from Swiss rival Adecco, is worth “significantly” more than its current share price, its biggest shareholder said yesterday.
Standard Life investment director of UK equities Lesley Duncan said: “We are fully supportive of Michael Page’s management. The strategy they have been pursuing will, we believe, continue to deliver positive returns for shareholders.”
Duncan added: “The value of the business in our view remains significantly above the current share price.”
Investment firm Standard Life owns around 11 per cent of Michael Page’s stock.
Shares in Michael Page closed 0.2 per cent down at 351.5p, valuing the business at £1.1bn.
Standard Life’s comments come after Adecco, the world’s largest recruiter confirmed it had made an unsolicited approach for Michael Page on Tuesday.
Adecco said talks were “at an early stage” and declined to comment further on the matter
Michael Page downplayed hopes of a deal saying it had “a very strong future as an independent group.”
Neither firm would confirm what price Adecco had offered for its recruitment rival, but analysts believed the Swiss firm had bid between 350p and 375p.
Analysts say that Adecco may have to bid as much as 500p a share to win Michael Page’s management around.
Shares in Michael Page, which before Adecco’s bid have more than halved over the past year, shot up 32 per cent on Tuesday to 352p.
Buying Michael Page would accelerate the push by Adecco, still best known for supplying clerical temps and short-term blue collar workers, into the law, accountancy, and sales and marketing sectors in which the British group specialises.
The move follows consolidation in the temporary employment sector, notably last year’s merger of Randstad and Vedior of the Netherlands, two of the world’s top temping groups.