US newspaper operator MediaNews Group Inc. on Friday revealed a large stake in job board operator Monster Worldwide Inc. and urged shareholders to oppose the previously announced $429 million takeover of Monster from staffing giant Randstad saying that that the price undervalues Monster’s potential value.

MediaNews said it owns an 11.6% stake in Monster and called Randstad's offer of $3.40 a share for Monster the definition of "selling at the bottom." 

In an open letter to Monster's board of directors, MediaNews Group Vice President Joe Anto said fellow shareholders should oppose the deal and that Monster should explore an auction, a review of business operations or a restructuring.  He said Monster could boost its share price to $6 to $8 per share in 18 months by cutting costs, selling non-strategic assets and launching a change in strategic direction. MediaNews urged the board to explore all possible avenues, including the launch of a competitive sales process.

“It is our understanding that the Randstad deal was not the result of a formal auction process,” said Joe Anto, senior vice president of MNG, in a letter to Monster’s board. “It seemed to come together very quickly, apparently without any attempt to fully market the company in recent months.”

The group warns that it would study all rights in his possession if the Randstad takeover should go to completion in the announced conditions.

MediaNews’ apparent surprise at the deal is a surprise in itself considering Monster had been considering strategic alternatives as far back as March 2012. When contacted by Staffing Industry Analysts, Randstad had no immediate comment on the opposition to the deal.

MediaNews is a newspaper operator with 240 properties in 12 states. It also operates a regional job board. Randstad is the second-largest human-resources services provider in the world, behind Switzerland's Adecco Group AG.