STOCKS NEWS EUROPE-UK recruiters down on Adecco-MPS bid
Shares in British recruiters Hays (HAYS.L) and Michael Page (MPI.L) fall 4.4 percent and 2.2 percent respectively, following Swiss peer Adecco's (ADEN.VX) bid for its American rival MPS Group (MPS.N) on Tuesday, which Cazenove says could increase competition in the UK market.
"We are somewhat concerned that Adecco may push more aggressively into the main UK permanent market, potentially using Badenoch & Clark, a UK competitor of Michael Page (MPI.L) and Hays," Cazenove analysts say in a note.
"Badenoch & Clark, for example, is the number three UK public sector recruitment company, whereas Hays is the number one."
Cazenove also says an Adecco move on Hays and Michael Page, which Adecco tried to buy last year, is now much less likely, as Adecco says MPS marks the end to big acquisitions.
Evolution Securities, meanwhile, initiates on Hays with a "buy" recommendation, pointing to increasing confidence in the Australian economy, which it says is the company's largest and most efficient business.
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