Whitehead Mann has confirmed that it is in talks that could lead to a takeover by a rival headhunter in the US.

A report in the Financial Times indicated that Whitehead Mann was talking with US headhunters Korn/Ferry International and Heidrick and Struggles about a potential takeover.

The company has been struggling despite the upturn in the recruitment market and issued a profit warning last month.

This caused a share price slump and prompted the resignation of its chief executive, Stephen Lawrence (pictured).

Following the debacle, some investors to urge the company to put itself up for sale.

A statement issued to the stock market by Whitehead Mann's board said: "The board of Whitehead Mann Group notes the recent press speculation and confirms that it has received a number of approaches which may or may not lead to an offer for the company. A further announcement will be made when appropriate."