Adecco still keen on Michael Page despite rejection

By Dan Lalor and Katie Reid

LONDON/ZURICH (Reuters) - World No.1 staffing agency Adecco (ADEN.VX) will keep pursuing British recruitment company Michael Page (MPI.L), which rejected on Friday for a second time an offer valuing the firm at 1.3 billion pounds.

"Adecco believes that there is scope for a combination with Michael Page which is to the benefit of both companies and their respective shareholders," Adecco said in a statement.

Michael Page, which specialises in the professional staffing market, said it had rejected as too low an initial offer of 400 pence per share, or about 1.3 billion pounds, for the whole group that Adecco made in June.

Adecco revised the offer on Tuesday to propose buying at least 50.1 percent of the British group at a price that would be "consistent" with 400 pence per share, Michael Page said, but added it had also rebuffed this approach.

"The board ... unanimously concluded that this revised proposal also materially undervalued the company and its prospects and that the proposed transaction structure was unattractive for shareholders," it said.

By 11.26 a.m., shares in Michael Page, which hit a nine-month high of 369.75 pence last week when news broke of the Adecco approach, had tumbled 6.3 percent to 314 pence, while Adecco shares were up 0.3 percent at 50.80 francs.

"Adecco can raise the bid, but I am not sure if they will as they have offered the same price twice now. Adecco may start to approach other takeover targets in the professional staffing business," said Helvea analyst Chris Burger.

"These are likely to be smaller than Michael Page. There are several unlisted companies that it could target."