RSM Tenon says debts likely to lower Baker Tilly offer

Advisory and accountancy group RSM Tenon has conceded that, should an offer for the business be forthcoming from Baker Tilly, its high debts mean "minimal value, if any" will be attributed to its issued share capital.

The company said in a statement on Friday that discussions relating to a possible takeover of RSM Tenon by the accountants and business adviser group are ongoing. However, its debt levels may change the nature of a possible offer. Previously, the company said its high debts meant that, if an offer is made, it would likely to be at a level "significantly below" the current market price of the ordinary shares of the company. The company said Lloyds Banking Group continues to be supportive of the business as it discusses ways to address its high level of borrowings. It added a furt...