International recruitment services company OPD is in discussions with chairman Peter Hearn and a number of other members of its management team regarding a 57p per share cash offer for the company. 

OPD’s share price closed up 11p at 50.75p on Friday. The 57p per share being discussed represents a 13% premium to the share’s Friday closing price. 

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.  

The news came as OPD 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 if and once market conditions improve.

The statement continues: “In such circumstances the board may seek additional funding through an equity issuance which could be material in the context of the company’s current equity valuation. The funds raised will allow the company to be sufficiently capitalised to take advantage of opportunities when market conditions improve.”