Baker Tilly pulls out of RSM Tenon bid

Nick Baxter 2013

Accountancy firm Baker Tilly has pulled out of its bid to acquire RSM Tenon but says it remains interested in a future deal. 

In a statement to the stockmarket this morning, Baker Tilly says it still believes there is “significant value” in the RSM Group, which includes an accountancy arm and financial adviser business, and continues to be interested in an alternative deal to acquire parts or all of the firm.

RSM Tenon announced in July it was in talks to be acquired by Baker Tilly after an “unsolicited” approach for the business.

RSM Tenon made a pre-tax loss of £7.5m for the six months to 31 December, compared to an £83m loss in the same period in 2011.

The accounts said at the time the company was involved in a dispute with its professional indemnity insurers over a £4.3m FSA settlement dating back to 2010 for missold Lehman-backed structured products and unsuitable pension switching advice.

The firm’s huge losses in 2011 were largely due to exceptional items relating to a £63.7m goodwill writedown and the FSA settlement costs.

Dentons Pension Management bought RSM Tenon’s Sipp arm, Tenon Pension Trustees, for an undisclosed sum in March.

In December, RSM Tenon dropped PricewaterhouseCoopers as its auditor following a long-running battle about the quality of PwC’s auditing.