Adecco-Hays Rumours Surface (Again).

Adecco-Hays Rumours Surface (Again).

According to press reports Adecco could be looking at a £2.0bn + bid for Hays, here’s the story as reported online by Louisa Peacock, Jobs Editor The Telegraph.

Adecco declines comment on Hays bid talk

Adecco has declined to comment on speculation it may bid for British recruitment firm Hays, which saw its shares rise by as much as 5pc this morning on the back of takeover rumours.

The world's biggest staffing agency, Adecco, could be lining up a £2.2bn or 160p-a-share cash bid according to the Daily Mail's market report. The company refused to comment but said it was eyeing potential "bolt-on" acquisitions.

Hays

Hays reported a 16pc jump in net fees for the quarter ending March 31 on a like-for-like basis, citing strong growth overseas.

However, Hays is considered vulnerable to a takeover by some as its UK business saw net fees decline by 2pc over the period, largely due to a drop in income from public sector jobs.

Fees from public sector jobs is now down about 50pc from peak levels, the group said in April.

Elsewhere, the combined impact of the Queensland floods, Christchurch earthquake and Japan tsunami reduced net fees and operating profits by about £3m-£4m, Hays said at the time.

A Hays spokesman today refused to comment on market rumour of a takeover.

Adecco spokesman Stephan Howeg, said: "We cannot comment on speculation. What we can say is that bolt-on acquisitions are possible." He said Adecco may spend up to about £150m on bolt-on purchases but refused to go into further detail.

Shares in Hays were up 5.3pc this morning at 10:11am, to 111.60p.

It is not the first time Adecco has been rumoured to bid for Hays. Analysts have previously said any takeover bid was unlikely as the company only wanted to secure bolt-ons. Some analysts said the "Hays bid story" emerges once a year.

Kevin Lapwood, Seymour Pierce analyst, said today: "Hays has got the accountancy business and quite a strong presence in construction, so in terms of what Adecco has said it would like to buy in the past Hays does fit the bill. I just think that this might be slightly too big for it to absorb at the moment."

Another analyst, who did not wish to be named, told Reuters that while he thought Adecco could foot the bill for Hays, there were better alternative targets.

"Adecco tends to grow externally mainly in emerging markets and developing countries, or in professional staffing so I would not rule out Hays but for me it would not be the first target," he said.