FSA fines Tebbutt over Inter Alliance merger

When Millfield proposed the merger of its network MG with Inter Alliance, the regulator discovered there was a £3m shortfall in MG's working capital, as a result of an overdraft facitility it had which was guaranteed by Millfield. As both firms were loss making, the FSA says this proved to be a considerable concern in whether the deal could be approved. As a result, the FSA required Millfield to provide a director's guarantee of £3m to plug the gap, to ensure the merger could be approved by 5th October. But as time was a factor, the regulator agreed to accept a letter of intent regardin...