Global recruitment firm Adecco today called off its £1.3 billion (€1.6 billion) takeover pursuit of British rival Michael Page International.
Adecco's decision to walk away came after Michael Page twice rejected proposals from the Swiss recruitment giant.
While admitting it was currently unable to agree a deal on acceptable terms, Adecco did not rule out returning at a later date. It is now banned under takeover rules from making another offer for six months, unless there is a rival approach or a change of stance from Michael Page.
Adecco said: "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."
Michael Page issued a brief statement, repeating that the proposals from Adecco
"materially undervalued" the company and its prospects. It said the interests of its shareholders and employees would be best served by Michael Page remaining an independent entity.
Adecco first approached Michael Page in early May, putting forward a proposal to buy the firm at 400p-a-share, valuing the firm at £1.3 billion.
Michael Page rebuffed its initial potential offer, but Adecco lodged a revised proposal to become a majority shareholder, by buying a stake of at least 50.1 per cent at a price that was "consistent" with its initial 400p a share price.
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 shareholders being diluted.
The FTSE 250 Index listed company was launched in 1976 by Michael Page and Bill
McGregor from an office in London and made its first move overseas in 1985, opening an office in Australia. Mr Page retired from the business in 1995.
The group operates through 166 offices in 28 countries worldwide and has more than 5,000 staff. It employs around 1,850 people in the UK, a figure which increased this year following the opening of new offices at Cardiff, Newcastle and Canterbury.
The UK business contributes nearly a third of group profits, but its latest quarterly results showed that growth slowed to a near standstill as the financial sector turmoil put a brake on new hirings.
Growth on mainland Europe, Asia-Pacific and the Americas meant overall gross profits were up 26% to £152.4 million during the second quarter.
PA