Recruiter SThree rejects US-based Circle8's takeover bid

Sept 11 (Reuters) - Recruiter SThree unanimously rejected an unsolicited all-cash takeover approach from U.S.-based Circle8 Group on Friday, saying the proposal significantly undervalues the British company and its future prospects.  

Here are some details:

• SThree, which has a market value of £336 million ($453.77 million), said it remains confident in long-term growth prospects for the business.

• Shares in the London-listed firm were down 3.7%.

• Under the U.K. Takeover Code, Circle8 must either announce a firm intention to make an offer or walk away by October 7.

• British recruiters have been leaning on cost cuts to shore up profits as AI-driven efficiencies weigh on hiring, with firms also increasingly shifting toward shorter-term contracts.

• In July, SThree's half-year like-for-like pretax profit fell by three-quarters, as an AI-driven hiring slowdown and the economic impact of the Iran war weighed.

• Technology and workforce solutions firm Circle8 said on Thursday its Nasdaq valuation undervalues its potential and the proposed deal would create a nearly $3 billion revenue platform.

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

($1 = 0.7405 pounds)

(Reporting by Nithyashree R B and Ankita Bora in Bengaluru; Editing by Maju Samuel)