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CORRECTED - UPDATE 1-Adecco agrees to buy Dutch DNC for $83 mln

Mon Sep 1, 2008 3:33am EDT

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(Corrects figure in paragraph 9 to 3.2 billion euros from 3.4 billion)

ZURICH, Sept 1 (Reuters) - Swiss recruitment agency Adecco (ADEN.VX) said on Monday it has agreed to buy Dutch staffing firm DNC DENE.AS for 56 million euros ($82.54 million), extending its push into the professional staffing market. Adecco, which has failed so far with a recent 1.3 billion pound ($2.38 billion) bid for British staffing group Michael Page(MPI.L), said the 12.25 euros per share cash offer for DNC represented a 52 percent premium over Friday's closing price.

A spokesman for Adecco, the world's largest staffing group, said the bid was unrelated to its approach for Michael Page.

DNC is a Dutch specialised secondment firm with around 1,200 people active in the segments ICT, Finance, Legal, Management Support & Information Management.

Adecco said it intended to make the offer within two months and the DNC supervisory board unanimously supported it.

The offer was also fully supported by certain large shareholders, who have agreed irrevocably to tender their shares, representing 80 percent of the outstanding shares.

Adecco has a warchest of 1.4 billion euros ($2.06 billion) and is looking to strengthen its position in the higher-margin professional and permanent staffing market. It has been on the prowl for acquisitions for several months.

Michael Page, which specialises in the professional staffing market, has twice rejected as too low an offer from Adecco of 400 pence per share, and has stressed its desire to remain independent.

The Dutch staffing market is still ripe for consolidation even after Randstad's (RAND.AS) takeover of fellow Dutch rival Vedior for 3.2 billion euros, with smaller firms such as USG People (USGP.AS) and Brunel (BRUN.AS) seen as likely targets.

Both companies have said they intend to remain independent.

For the full Adecco statement click on [ID:nHUGBRYOBa]

(Reporting by Sven Egenter; Editing by Erica Billingham)



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