Accountancy and advisory firm RSM Tenon has announced rival firm Baker Tilly has today (25 July) made an unsolicited approach regarding a takeover offer.
In a statement made to the London Stock Exchange, RSM Tenon announced that it is in discussions with Baker Tilly, which “may or may not lead to an offer being made for the entire issued share capital of the company”.
The statement said: “This announcement does not amount to a firm intention to make an offer and, accordingly, there can be no certainty that an offer will be made.”
Baker Tilly now has until 5pm on 22 August to announce a firm intention to make an offer for RSM Tenon or announce it does not intend to make an offer, unless the takeover panel agrees otherwise.
Shares in RSM Tenon have fallen 30% to 2.25p since the announcement broke.
Due to RSM Tenon’s levels of debt, any offer would need the support of its sole lender, Lloyds Banking Group.
The statement said: “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.”
Former chief executive Andy Raynor and chairman Bob Morton both left the company at the start of 2012, as RSM Tenon took a 27% hit to its shares. In October 2012 the company cut 400 jobs, as it later posted losses of £10m for the six months to 31 December 2012.