RSM Tenon shares suspended as Baker Tilly plays a waiting game over takeover deal

ACCOUNTANCY firm RSM Tenon’s shares have been temporarily suspended pending an announcement.

The suspension – at the request of RSM Tenon – follows this morning’s announcement from fellow accountancy firm Baker Tilly that its mooted takeover of RSM Tenon will not go through.

Under City takeover and merger rules Baker Tilly had until today to make an offer but in a statement to the London Stock Exchange this morning it confirmed that it does not intend to bid for the entire issued share capital of RSM Tenon.

But it clearly believes it will be able to pick off at least some of the RSM Tenon business.

It said: “Baker Tilly remains of the view that there is significant value in the RSM Tenon group and continues to be interested in an alternative potential transaction involving an acquisition of part or all of the business of the RSM Tenon group provided that such alternative potential transaction does not constitute an offer falling within the jurisdiction of the City Code.”

Market observers will interpret that as meaning that it will either attempt to ‘cherry pick’ the juiciest parts of RSM Tenon’s business or even wait for its ailing rival to fail before making a move.

It was at the end of July that Baker Tilly confirmed it was reviewing the potential opportunity of making an offer for RSM Tenon.

Earlier this month RSM Tenon made an announcement to the London Stock Exchange that said its high level of debt meant that any takeover of the business by Baker Tilly would be unlikely to involve a financial settlement.

The statement went on to say that Lloyds Banking Group plc was continuing to be supportive of the business as the company discusses with it ways to address its high level of borrowings.

Last year RSM Tenon posted a pre-tax loss of £101m, largely due to exceptional items of £77m. In April it said debt stood at £80m.

Both Baker Tilly and RSM Tenon have operations in Yorkshire.