Headhunter Michael Page today posted record profits as Swiss rival Adecco hinted that it could turn hostile in its takeover bid.

Page, one of the best known names in City recruitment, delivered a 22% rise in profits for the first half of the year to £84.1 million.

It came as Adecco insisted it wanted a "friendly" takeover of the firm - but said it was keeping all its options open. Page shares 5p to 322½p, valuing the company at just over £1 billion.

Page last week rejected a bid of £1.3 billion, saying that it undervalued the company, while reports over the weekend suggested Adecco had ruled out going hostile.

However, the Zurich-based firm today said: "At the request of the UK Takeover Panel, Adecco is clarifying its position. While it is focused on negotiating a recommended offer for Michael Page, Adecco is keeping all its options open at this stage."

A spokesman added: "We intend to do a friendly takeover, while we keep all our options open."

Page chief executive Steve Ingham said that given the nature of the recruitment business it would be "remarkably sensible" for Adecco to pursue a friendly rather than hostile takeover.

His case was bolstered by record profits for the six months to the end of June despite job losses in the City and a lack of hiring in banking and much of the the financial sector. Of the UK business, which accounts for a third of Page's profits, Ingham said: "While there continues to be weakness in banking and related sectors, outside of these areas we continue to experience good job and candidate f low. However, there is increasing cautionary behaviour being shown by both candidates and clients.

"The UK and North America could continue to be difficult this year and next year but it is very difficult to predict. We have seen this before and we are pretty good a managing downturns.

We have never lost money."

Page, which has166 offices in 28 countries and generates nearly two-thirds of its profits outside the UK, delivered revenues of £500 million in the first half, up 26% on a year earlier.

In Britain, revenues were up 7% to £188.8 million.