Recruitment group Marlborough International has put takeover contacts with five recruitment companies on the "long finger" following its abandoned acquisition discussions with US company E-Pawn, chief executive Mr David McKenna said yesterday.

After the company's a.g.m. in Dublin, Mr McKenna admitted the E-Pawn situation was a problem which was having a negative impact on the company's share price.

Marlborough International's share price has fallen to €1.24 from €1.90 in mid-June since it emerged the company was in takeover discussions with US auctioneering website E-Pawn just days before the American company's shares were suspended by the Securities and Exchange Commission following allegations of fraud.

Mr McKenna said the fall-out from the E-Pawn controversy had put acquisition discussions with five recruitment companies on the "long finger".

But these would be restarted and would include another company which contacted Marlborough International earlier this week about a potential takeover, he added.

He said Marlborough International would consider potential acquisitions in the US, UK, mainland Europe and the Republic.

Mr McKenna said there was now "no current situation" with E-Pawn.