SThree Rejects Takeover Proposal From Circle8

By Dominic Chopping

British recruitment company SThree on Friday rejected an approach from U.S.-based Circle8, saying the takeover proposal significantly undervalues the company and its future prospects.

Circle8, a technology and business transformation platform that operates across North America and Europe, confirmed earlier this week that it had submitted a proposal for London-listed SThree, saying a combination would significantly increase the group's international scale and accelerate plans to bolster its IT and technology platform.

Circle8 had said its proposal would be financed without the need to issue new shares.

In its rejection statement Friday, SThree said it had concluded that the unsolicited approach was not in the best interests of its shareholders.

"Accordingly, the SThree board unanimously and unequivocally rejected the proposal," it said.

Under U.K. takeover rules, Circle8 has until Oct. 7 to announce a firm intention to make an offer for SThree or walk away.

SThree added that there can be no certainty that any offer will be made, nor as to the terms of any such offer.

Circle8 didn't immediately respond to a request for comment.

SThree shares fell 3.6%, while Circle8 shares rose 8.2% premarket.

Write to Dominic Chopping at dominic.chopping@wsj.com

(END) Dow Jones Newswires

September 11, 2026 08:23 ET (12:23 GMT)