SThree rejects preliminary cash approach from Circle8

SThree’s ($STEM-LSE) board unanimously rejected a preliminary, unsolicited and highly conditional cash takeover approach from Circle8 ($CIRC). Directors said the proposal substantially undervalues SThree and its prospects. The announcement provides a formal response to the approach, rather than confirmation of agreed terms or a recommendation that shareholders accept an offer.

Circle8 remains subject to the UK takeover timetable and must announce a firm intention to make an offer or withdraw by the applicable deadline, unless an extension is granted. The rejection notice did not disclose an offer price. Discussions, a revised proposal or withdrawal remain possible; the board’s decision should not be presented as either a completed takeover or definitive confirmation that no further bid will emerge.

Sources:

• SThree — rejection announcement, RNS / London South East