International recruitment services company OPD has confirmed it has received an indicative offer for the company from chairman Peter Hearn at 57p a share. OPD says an independent committee of the OPD board has been formed to evaluate the indicative proposal and has granted Hearn permission to undertake limited due diligence into the company.

Hearn now owns 27% of OPD’s shares. The other major shareholders are global asset management company Schroders with 22% and insurance giant AXA with 7%. But as Ian Jermin, analyst at investment banking firm John East and Partners, points out Hearn is now getting close to the 29.9% above which he must make a formal offer. Hearn needs over 50% to make the offer unconditional, but even then any attempt to reach the 90% to gain control could be thwarted if Schroders tells him to go away.

OPD subsequently announced that trading had deteriorated from -20% in January/ February to -30% in March/April when compared with the same periods in 2008. The company says it will continue to reduce costs in line with revenue. However, it warns that should trading fail to improve such action may adversely impact the ability of the business to compete effectively, retain high quality employees and trade profitably once market conditions improve.

Such news may yet help Hearn pursue his quarry, but even so with OPD shares trading at close to £5 as recently as two years ago, it would be quite a deal should he pull it off.