Corporate Services Group (CSG), owner of the Blue Arrow recruitment brand, has denied rumours that a pair of corporate raiders is on the verge of taking over the company.

The Active Value Fund, controlled by Brian Meyerson and Julian Treger, recently increased its share in CSG to 28%, at a time when CSG has been undergoing an internal shake-up. Industry rumour suggests that CSG management has been in talks with Active Value about the company’s future.

CSG chief executive Peter Owen said: ‘As they [Active Value] are shareholders in the company, they have the right all shareholders have to know that we are trying to improve the value of the shares. We will be putting in systems to make ourselves more efficient and looking at new markets to explore.’

Owen said, however, that there were no immediate plans to sell further shares to Active Value.

Active Value acquired a 10% stake in CSG in 1999, and further increased its share in March. If Meyerson and Treger acquire more than 30% of CSG, which is to publish interim results in June, they would have to announce a takeover bid.

Companies recently targeted by Active Value include the recruitment consultancy BNB Resources.

Sources claim an internal review at CSG may include a management buy-out, or selling off some of the Group’s businesses.

Although the company’s UK operation reports first quarter sales that have increased by 2.9% compared with the same period last year, its US operation has not fared so well. In the quarter ending March 2001, CSG reported US sales had decreased by 15.2%.