US-based Circle8 gets deadline extension to bid for British recruiter SThree

Circle8 Gets Extension to Submit Improved Bid for British Recruiter SThree

SThree Receives Extended Deadline for Takeover Offer

Background and Recent Developments

Oct 7 (Reuters) - British recruiter SThree on Wednesday said the UK's takeover panel had extended the deadline for US-based Circle8 Group to make a takeover offer for the company to October 21.

SThree shares rose as much as 6.1% after the news, and closed the session up by 2.2%. 

Details of the Takeover Bid

• The British company had last month rejected an unsolicited approach from staffing services firm Circle8, saying the proposal significantly undervalued SThree and its long-term prospects.

• Circle8 made a revised proposal regarding an improved cash offer and requested an extension of the deadline to announce a firm intention to make a bid, SThree said.

Industry Context and Company Performance

• The recruitment sector has been squeezed by a prolonged hiring freeze as companies delay decisions amid economic and geopolitical uncertainty, pushing some smaller UK-listed firms into bid territory at depressed valuations.

• Last month, SThree raised its annual pretax profit forecast after cost cuts and continued growth in its US business, although it said clients and candidates remained cautious amid AI-related disruption, higher costs and uncertainty stemming from the Middle East conflict.

Additional Information

• Circle8 did not immediately respond to a Reuters request for comment.

($1 = 0.7569 pounds)

(Reporting by Anushka Chourasia and Ankita Bora in Bengaluru; Editing by Rashmi Aich and Jonathan Ananda)