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Shares in Dutch staffing company USG People (USG:AEX) fell by 30% before recovering to be down 7% after Swiss staffing services group Adecco (ADEN.VTX) announced the takeover of U.S. rival MPS Group (MPS.NYQ) for $1.3 billion, reducing hopes that USG will be acquired by Adecco, Het Financieele Dagblad reports.
ING analyst Marc Zwartsenburg said "shares in USG People have had 'quite a run' in recent weeks due to speculation that Adecco might make a move for the company."
"The takeover of MPS by Adecco is in line with Adecco's strategy of focusing on the professional market, while USG People is more active in the general staffing market," Zwartsenburg says. "The likelihood Adecco will also bid for USG is eroded."
He says further "Adecco is becoming a specialist in the United States and the deal highlights the shift in the staffing sector to increasingly focus on the professional market."
In early trading USG's shares were down 2.08% to 13.39 Euro.