RSM Tenon today said that discussions with Baker Tilly UK over a possible take over are continuing, but any offer would likely be of minimal value due to RSM Tenon’s debt levels.
Following the announcement, RSM Tenon’s shares fell by more than 55% in just a few hours.
Last month, RSM Tenon had revealed that Baker Tilly UK had expressed an interest to acquire the firm.
In an updated statement published today on the London Stock Exchange, RSM Tenon said: "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 will be attributed to the issued share capital of the Company."
Today’s statement also said that Lloyds banking Group continued to be supportive of RSM Tenon’s business as it discusses ways to address its high level of borrowings.
Under the City Code on takeover and merger, Baker Tilly has until 22 August to make an offer.