Investors at troubled headhunting company Whitehead Mann have been buying up shares to stave off a cut-price takeover bid.

Jupiter Asset Management, the largest shareholder in Whitehead Mann, has acquired a further 4% of the firm to take its holding to 17%.

Whitehead Mann has reportedly been talking with US firms Korn/ Ferry International and Heidrick and Struggles about a possible takeover.

The company has been struggling despite the economic upturn and issued a profit warning in October.

Poor results in the six-month period ended in September led to the firm playing down its prospects for the second half of the year.

Managing director Chris Merry is now in charge of the firm, after the recent resignation of chief executive Stephen Lawrence.

Shareholders will only receive a dividend of 1.5p per share, compared with 3p per share last year.