Spherion floated Michael Page as a reaction to its rival Robert Walters going to market, Professional Recruiter can reveal.

The Walters IPO allowed the US staffing giant to put a cash value on Page, according to Jan Wahby, Spherion’s senior vice president and MD of European operations.

Wahby attacked commentators who suggested that Spherion - which also owns Crone Corkhill and FSS - had made the sale because it had been unable to integrate Michael Page into its business. She admitted that Spherion’s high level of debt had played a part in the decision to sell Page, but said the decision to go to market earlier this year was based solely on economic grounds - and a key factor was the earlier Robert Walters IPO.

‘Wall Street never understood Michael Page’s business model,’ said Wahby. ‘The American model is different, and Wall Street doesn’t really know how permanent recruitment operates. Once Robert Walters was sold we could value Michael Page.’

The move paid off. Spherion bought Michael Page in 1997 for £330m and realised £656.3m from April’s IPO - thus making £326m in four years.

‘We made a huge return. It was a financial transaction to enhance value and reduce debt,’ said Wahby.

The news comes as Wahby was promoted to corporate vice president of global marketing for Spherion. Her replacement is Aled Morris, who was previously CEO of Office Angels, part of the Adecco group of recruitment companies.