Michael Page, the recruitment specialist, announced this morning that it has halted talks with Adecco, the Swiss-based recruiter, over a £1.3 billion bid for the company.

The management of Britain’s second largest recruitment agency said today that two separate bids from Adecco undervalued the company.

Adecco said it was considering its position with regards to the bid and that there is scope for a combination with Michael Page which is to the benefit of both companies and their respective shareholders. It also stated that it thought it was important to retain senior management of Michael Page in the event that an offer is successful.

The world’s largest recruitment initially approached the British agency in June.

After its bid was rebuffed earlier this week, the company came back with another proposal, which involved Michael Page issuing new ordinary shares to Adecco, at around the 400p per share mark, so that Adecco would own at least 50.1 per cent. Michael Page would remain listed on the London Stock Exchange with Adecco as the majority shareholder, and would return the proceeds of the share issue to its existing shareholders.

Buying Michael Page would boost Adecco's presence in higher-margin professional and permanent staffing, extend its geographic reach and cut costs.

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