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RSM Tenon warns Baker Tilly could pay nothing for takeover
by Daniel Grote on Aug 16, 2013 at 07:55
Financial services group RSM Tenon has warned that any takeover offer from accountants Baker Tilly is likely to attribute ‘minimal value, if any’ for the company’s shares, given its high debt levels.
Tenon revealed last month it had received an unsolicited takeover approach from Baker Tilly. At that time, it warned any offer made was likely to be below the market price of the company’s shares.
That caused shares in RSM Tenon to tumble 34% to 2.25p. They have since fallen further, to 2p.
Tenon said in a statement to the market this morning that discussions with Baker Tilly were continuing. ‘However, it is now likely that, as a consequence of the company’s high debt level, if an offer is made by Baker Tilly, minimal value, if any, will be attributed to the issued share capital of the company,’ it said.
‘Lloyds Banking Group continues to be supportive of the business as the company discusses with it ways to address its high levels of borrowings.’
Tenon endured a torrid 2012, announcing at the start of the year it would be restating its accounts for the year ending 30 June 2011 after discovering ‘black holes’ in its books.
Previous chief executive Andy Raynor and chairman Bob Morton left the business at the beginning of the year, with the company taking a 27% hit to its shares. Last October, it announced it had cut 400 jobs as it posted a £100 million loss.
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