A round-up of today's business news

Adecco refuses to rule out hostile bid

Switzerland's Adecco has refused to rule out a hostile bid for Michael Page International, sending the shares in the UK-based specialist recruitment agency sharply higher.

Adecco, the world's largest staffing company, said it was clarifying its position at the request of the Takeover Panel after newspaper reports that it was ruling out a hostile bid.

While it remained focused on negotiating a recommended offer, it said it was keeping all options open.

Michael Page, which last week rejected a 400p-a-share offer from Adecco, originally specialised in accountancy recruitment. It remains a force in financial services but has broadened its business to cover other sectors. - (Financial Times service)

Anglo shares downgraded

Anglo Irish Bank has been downgraded to "sell" from "neutral" by Swiss bank UBS, which said that the risk to earnings would remain "on the downside" as the commercial property market slows.

Analyst Ross Curran cut his earnings forecast for Anglo for the year to September 2009 by 29 per cent and for the following year by 58 per cent due to higher bad debts.

Nortel strike threat in North

Telecommunications manufacturer Nortel says it is aware of planned industrial action by an estimated 150 employees at its plant in Northern Ireland.

Workers at the plant say they intend to hold a series of half-day strikes until further notice every Monday, following a dispute about pay and conditions.

Management and employees had previously been taking part in pay talks but these broke down without any agreement. The Canadian company, which has invested more than £70 million in the North, employs just over 600 people at its plant in Monkstown.

Iona acquisition recommended

Proxy advisory firm Institutional Shareholder Services is recommending that shareholders in Iona Technologies vote in favour of its acquisition by Progress Software at the extraordinary general meeting on August 28th next.

US firm Progress is proposing to buy Iona for $4.05 a share, valuing the Irish software maker at €109.9 million (€74.7 million).

IIB cuts mortgage fixed rates

IIB Bank, the fifth-largest mortgage lender in the State, has reduced its three and five-year fixed-rate mortgages by 0.25-0.3 of a percentage point. The bank has also introduced a "flexible mortgage" that allows customers to make over-payments every month on a mortgage split between a variable and fixed-rate and reduce their interest bill.

IIB has started offering its two-year fixed-rate again but has not reintroduced its one-year rate.

Billiton backs Rio Tinto takeover

BHP Billiton pressed the case for its proposed takeover of rival Rio Tinto as it unveiled record full-year profits yesterday.

Marius Kloppers, chief executive of BHP Billiton, said the takeover, valued at about $127 billion, made "more sense than ever".

The world's biggest miner reported a 22 per cent rise in pre-tax profits from $19.2 billion to $23.5 billion in the year to June 30th as BHP benefited from record production in several key commodities as well as strong demand in China, cost cuts and its focus on high- margin growth projects. This was the seventh consecutive year of record profits.

However, BHP has warned of challenges facing the commodities sector. - (Financial Times service)