US-based Circle8 gets deadline extension to bid for British recruiter SThree

Oct 7 (Reuters) - British recruiter SThree on Wednesday said the UK's takeover panel had extended the deadline for US-based Circle8 Group to make a takeover offer for the company to October 21.

SThree shares rose as much as 6.1% after the news, and closed the session up by 2.2%. 

• The British company had last month rejected an unsolicited approach from staffing services firm Circle8, saying the proposal significantly undervalued SThree and its long-term prospects.

• Circle8 made a revised proposal regarding an improved cash offer and requested an extension of the deadline to announce a firm intention to make a bid, SThree said.

• The recruitment sector has been squeezed by a prolonged hiring freeze as companies delay decisions amid economic and geopolitical uncertainty, pushing some smaller UK-listed firms into bid territory at depressed valuations.

• Last month, SThree raised its annual pretax profit forecast after cost cuts and continued growth in its US business, although it said clients and candidates remained cautious amid AI-related disruption, higher costs and uncertainty stemming from the Middle East conflict.

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

($1 = 0.7569 pounds)

(Reporting by Anushka Chourasia and Ankita Bora in Bengaluru; Editing by Rashmi Aich and Jonathan Ananda)