Categories: Economics / Markets
Baker Tilly has announced that it will pay cash for RSM Tenon, following an investors' notice last week that it was considering the acquisition.
This second stock market announcement restated the first which said that RSM Tenon's discussions with Baker Tilly ‘may or may not' lead to an offer for the entire issue share capital of the company.
Today's statement said that despite the announcement that any offer would be made in cash, the announcement was ‘not one of a firm intention to make an offer'.
Last week's announcement said that RSM Tenon had been supplying information to Baker Tilly to help it evaluate the potential investment.
It added: "Given the level of debt within the company, any potential transaction would require the support of its sole lender, Lloyds Banking Group.
"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."
In accordance with the Takeovers and Mergers Code, Baker Tilly must announce its intentions towards the takeover by 5pm on 22 August.
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