Baker Tilly talks to RSM Tenon about below-market-value bid

Marion Dakers
ACCOUNTANCY group Baker Tilly has approached its listed rival RSM Tenon about a potential takeover, the firms said yesterday.

RSM Tenon, which was hit by a profit warning and an investigation into errors in its own accounts last year, said talks were at an early stage.

“Given the level of debt within the company, any potential transaction would require the support of its sole lender, Lloyds Banking Group,” said RSM Tenon.

“As a consequence, the board considers that, if an offer is made, it is likely to be at a level which is significantly below the current market price of the ordinary shares of the company.”

Shares in RSM Tenon slumped 30 per cent after the announcement, closing at 2.25p to give it a market capitalisation of £7.26m.

The company’s net borrowing rose to £80.4m at the end of 2012.

Baker Tilly has until 22 August to make a formal offer or walk away.