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Vedior hires Select for $1.8B
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September 2, 1999: 3:32 a.m. ET
Dutch employment group makes cash bid to secure global number three spot
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LONDON (CNNfn) - Dutch-based Vedior plans to become the world's third-largest employment agency following a $1.8 billion bid for Britain's Select Appointments.
The cash offer, launched after Amsterdam's market closed Wednesday, would create a group with about 4.6 billion euros ($4.8 billion) in annual sales and 2,000 branches in Europe and the United States.
The deal marks the latest consolidation in the staffing business following Swiss-based Adecco's $1.6 billion takeover of U.S.-based Olsten Corp. (OLS) last month, cementing its position as the global number one ahead of Manpower (MAN).
Vedior, the global number six, is paying 1,050 pence a share for sixth-ranked Select, an 18 percent premium on the group's closing price Tuesday, valuing the deal at 1.145 billion pounds ($1.8 billion).
Select (SLA) shares closed up 17 percent at 1,037.5 pence in London Wednesday.
Analysts viewed the price as expensive at 35 times Select's 1998 earnings, but the deal does give Vedior access to the U.K. firm's expertise in information technology recruitment. Vedior said the IT sector will now account for more than 20 percent of the enlarged group's revenue. 
-- from staff and wire reports
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