Manpower Considers Ways to Fight Blue Arrow Takeover Bid

Manpower Inc., the world’s largest supplier of temporary workers, prepared Thursday to rebuff an unfriendly takeover attempt by Blue Arrow, a much smaller, British-based employment firm.

In a filing with the Securities and Exchange Commission, Manpower, headquartered in Milwaukee, said it was exploring a variety of alternatives to Blue Arrow’s $1.21-billion offer. These include a possible merger or reorganization of the company, purchases of other companies, a sale of assets and a sale or issuance of voting stock.

Directors of Manpower, with more than 1,337 offices in 33 countries and $1.21 billion in revenue for the fiscal year that ended Feb. 28, are to meet today in Milwaukee to discuss their options. They will also consider recommendations by the investment banking firm of Morgan Stanley, which has been retained to assess the offer.

Chief Executive’s Views

“I’ll bring back to the board a group of reasonable alternatives. . .,” Mitchell S. Fromstein, the company’s chief executive, said in a newspaper interview from London. “One (alternative) is something we might buy. Another is someone buying us. Another is capital restructuring.” The interview with the Milwaukee Journal was circulated by the Associated Press.

One way that Manpower could try to fend off Blue Arrow is to load up so heavily on debt that its stock drops in value, a strategy that in the colorful vocabulary of mergers and acquisitions is known as a “poison pill.” Another defensive response would be to invite a friendly takeover from a “white knight.”

Fromstein, who returned to the United States from London on Thursday, is believed to be considering possible acquisitions of European employment firms.

On Wednesday, Manpower officials advised shareholders not to accept the Blue Arrow offer until the company makes its official recommendation, which it has promised by Monday.