Adecco has withdrawn its bid for recruitment consultancy, Michael Page.

Global recruitment group Adecco has withdrawn its takeover offer for international employment company Michael Page – which in turn has seen its shares plummet.

With a desire to expand its operations around the world, Adecco made the offer – reported in the Guardian newspaper as valued at an estimated £1.3 billion – to Michael Page in May 2008 under the belief that it would benefit both companies and all shareholders.

However, Michael Page rejected the offer and, unable to agree on terms satisfactory to both organisations, Adecco withdrew its bid.

Adecco is the world’s leading recruitment company and connects more than 700,000 associates with clients every day, while Michael Page is a leading international company with offices in 28 countries worldwide.

The recruitment industry is currently feeling the effects of the economy. According to the latest figures from the UK’s National Office for Statistics, the number of people in employment has fallen, while the number of those unemployed has increased by 81,000. Job vacancies have fallen by 56,900, leaving the number of those claiming benefits up by 32,500.