TMP spins off executive search business

None of its directors will also sit on the board of the original TMP company, which will retain the firm's advertising interests and its Monster internet jobsite.

Monster has been one of the most profitable parts of TMP, while the executive search business has been one fo the least proftable.

TMP said the split would allow each company to focus more closely on its core businesses.

Jon Chait, most recently CEO of the UK-based IT staffing company Spring plc, is to become CEO of the new company.

Andrew McKelvey, chairman and CEO of TMP Worldwide said: 'While a number of clients do use the services of two or more business units, the buying decision-makers for TMP's products are all distinctly different people within our clients' organisations. This.....will better align resources around our clients.'

The split into two companies also aims to eliminate any perceived conflict of interest between the different sides of the business.

Headhunters say TMP may also be getting ready to sell off its search division, which it is said to have offered to both rival global search firm Korn/Ferry International and, earlier, to Heidrick & Struggles within the last 18 months.

Senior sources at TMP Worldwide have always denied that its search business has been for sale at any stage.

Morgan Stanley is acting at TMP's financial adviser for the spin-off, which is expected to be completed in the first quarter of 2003.

After the announcement TMP shares rose nearly 14% during trading on Tuesday to $14.96, having seen a 52-week low of $7.9 and a high of $48.6.