Dutch recruitment firm buys Select for pounds 1.145bn

SHARES IN Select Appointments, the UK recruitment group, rose pounds 1.52 to pounds 10.37 yesterday after Vedior, a Dutch employment agency, said it would buy the company for pounds 1.145bn.

Vedior has made a recommended cash offer for the entire share capital of Select that values each of the company's shares at pounds 10.50. This represents a premium of 18.5 per cent based on the closing middle market price of Select shares on Tuesday.

Analysts say this is not a knock-out price, but it is fair. Select's shares ended 1998 on a low of pounds 3 after the downturn in Asian markets sent the company's value plummeting. If the deal goes ahead, it will represent the largest cash acquisition of a staffing company, topping Blue Arrow's takeover of Manpower in the early 1990s.

The two companies have been in talks for the past three months. It is believed their agreement was prompted by the desire of Select's Investor Group - comprising Odyssey Investments, Waverley, WST and SIH - to cash in its 36.7 per cent stake in the company. The group has agreed to subscribe for up to pounds 109m in new Vedior shares if requested.

Vedior went public last year and has a market capitalisation of pounds 1bn. The firm specialises in traditional staffing, placing clerical and light industrial workers. It operates in nine European countries but is focused on France, Belgium and Spain. According to a spokesman, Vedior was attracted to the Select acquisition because it was looking to develop the specialist side of its business and because it provides access to US and UK markets.

Select is a rapidly-growing specialist recruitment company, which focuses on the IT and accountancy sectors. It has been the most acquisitive staffing company of the 1990s, having bought 55 small businesses in the period.

Neither company would comment on whether there would be job losses, but a Select spokesman said: "This is not a cost-cutting exercise. It is intended to create a strong platform for the company to grow."

Start your day with The Independent, sign up for daily news emails
ebooksAn unforgettable anthology of contemporary reportage
Latest stories from i100
Have you tried new the Independent Digital Edition apps?
Independent Dating

By clicking 'Search' you
are agreeing to our
Terms of Use.

iJobs Job Widget
iJobs Money & Business

Recruitment Genius: Digital Optimisation Executive - Marketing

£30000 - £35000 per annum: Recruitment Genius: The UK's fastest growing, multi...

Recruitment Genius: Financial Reporting Manager

£70000 - £90000 per annum: Recruitment Genius: A Financial Reporting Manager i...

Recruitment Genius: Payments Operations Assistant

£23000 - £25000 per annum: Recruitment Genius: They win lots of awards for the...

Recruitment Genius: Telephone Debt Negotiator

£13500 - £20000 per annum: Recruitment Genius: This nationwide enforcement com...

Day In a Page

On your feet! Spending at least two hours a day standing reduces the risk of heart attacks, cancer and diabetes, according to new research

On your feet!

Spending half the day standing 'reduces risk of heart attacks and cancer'
Liverpool close in on Milner signing

Liverpool close in on Milner signing

Reds baulk at Christian Benteke £32.5m release clause
With scores of surgeries closing, what hope is there for the David Cameron's promise of 5,000 more GPs and a 24/7 NHS?

The big NHS question

Why are there so few new GPs when so many want to study medicine?
Big knickers are back: Thongs ain't what they used to be

Thongs ain't what they used to be

Big knickers are back
Thurston Moore interview

Thurston Moore interview

On living in London, Sonic Youth and musical memoirs
In full bloom

In full bloom

Floral print womenswear
From leading man to Elephant Man, Bradley Cooper is terrific

From leading man to Elephant Man

Bradley Cooper is terrific
In this the person to restore our trust in the banks?

In this the person to restore our trust in the banks?

Dame Colette Bowe - interview
When do the creative juices dry up?

When do the creative juices dry up?

David Lodge thinks he knows
The 'Cher moment' happening across fashion just now

Fashion's Cher moment

Ageing beauty will always be more classy than all that booty
Thousands of teenage girls enduring debilitating illnesses after routine school cancer vaccination

Health fears over school cancer jab

Shock new Freedom of Information figures show how thousands of girls have suffered serious symptoms after routine HPV injection
Fifa President Sepp Blatter warns his opponents: 'I forgive everyone, but I don't forget'

'I forgive everyone, but I don't forget'

Fifa president Sepp Blatter issues defiant warning to opponents
Extreme summer temperatures will soon cause deaths of up to 1,700 more Britons a year, says government report

Weather warning

Extreme summer temperatures will soon cause deaths of up to 1,700 more Britons a year, says government report
LSD: Speaking to volunteer users of the drug as trials get underway to see if it cures depression and addiction

High hopes for LSD

Meet the volunteer users helping to see if it cures depression and addiction
German soldier who died fighting for UK in Battle of Waterloo should be removed from museum display and given dignified funeral, say historians

Saving Private Brandt

A Belgian museum's display of the skeleton of a soldier killed at Waterloo prompts calls for him to be given a dignified funeral