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UPDATE 1-USG People gets shareholder ok for pref shares issue

Tue Dec 23, 2008 6:44am EST

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(Adds USG comment, share price)

AMSTERDAM, Dec 23 (Reuters) - Dutch staffing firm USG People NV (USGP.AS) received shareholders' approval on Tuesday to issue preference shares to a foundation, strengthening its defences against any potential takeover bid.

"The executive board believes the measure can strengthen USG People's negotiating position should this be necessary at any time in the future,"USG People, the Netherlands' second-largest jobs company after Randstad (RAND.AS), said in a statement.

The company has said an independent foundation could issue 65 million preference shares via a call option, giving it enough voting power to ward off a hostile offer.

In recent years, industrial group Stork and semiconductor equipment maker ASM International (ASMI.AS) tried to fight off activist investors with issues of preference shares to foundations but both cases went to court.

Shares in USG were up 0.4 percent at 9.02 euros by 1120 GMT, while the Amsterdam blue chip index .AEX rose 1.1 percent.

The company makes an attractive takeover target for world number one jobs company Adecco (ADEN.VX) or even U.S. rival Manpower (MAN.N) due to its focus on the high-margin professional placement market and strong Benelux operations, analysts have said. (Reporting by Foo Yun Chee and Gilbert Kreijger; Editing by Jon Loades-Carter)



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