Takeover talks for recruiter

Marlborough International, the publicly-quoted recruitment consultancy, has entered discussions which could lead to an offer for the company, it said yesterday.

In a statement confirming it was in "very preliminary discussions" which may or may not lead to an offer being made for the company, it said: "The board is, however, looking at a number of ways of enhancing shareholder value."

The statement came in a response to speculation in press reports, the company said. Its chief executive, Mr Dave McKenna, declined to comment. The company's share closed unchanged at €2 on the Dublin exchange yesterday after the statement was released. In London it closed 12.8 per cent stronger at 132 1/2p sterling.

Marlborough International's abandoned acquisition of a US group E-Pawn.com had a negative influence on its value, Mr McKenna admitted last month.

After trading at €1.90 on the Dublin exchange in mid-June, the stock fell to €1.24 when it was revealed that the US Securities and Exchange Commission (SEC) had suspended shares in E-Pawn.com.

The proposed deal, brokered by an E-Pawn.com board member and former Taoiseach Mr Albert Reynolds, was called off after one of the biggest securities fraud investigations in the US. Mr Reynolds was not a named party in actions taken by the SEC.

Marlborough's stock has traded upwards since reports circulated about a possible bid for the company.

Speaking after the company's a.g.m. on July 5th, Mr McKenna said the company had put takeover contacts with five recruitment firms "on the long finger".

He suggested at that time that another company had contacted Marlborough International about a potential takeover.