The Reed Family have bid to take over the healthcare recruitment company they founded.

This is the second time this year the Reed family, headed by founder Alec Reed’s son, James, have attempted to buy the company. They made a bid in August but talks broke down.

If successful, the bid would remove Reed Health Group from the stock exchange and return it to family ownership.

However, analysts at investment bank Investec advised the company’s board not to accept the bid, the Times reported.

Minority shareholders Schroder Investment Management are also reportedly opposing the offer of 55p per share.

With nearly 19% of the company, Schroder will be able to block the family acquiring the 90% shareholding they will need to compulsorily buy the rest of the company.

Reed Health Group spun off from its parent company and listed on the stock market in 2001.

Although successful in its first year on the stock exchange, the Reed family used a 50% shareholding to oust chief executive Christa Echtle and finance director Desmond Doyle.

It was downhill from there and shares slumped from highs of more than 181p each to a bargain-basement price of 34p following a series of profit warnings.

Deteriorating market conditions, caused by an NHS clampdown on agency spending, caused the company to struggle. Results for the year ended in June revealed pre-tax losses of £2.13m.