Accountancy firm, Baker Tilly has approached rival RSM Tenon over a possible takeover bid from the company that might impact shareholder value.

The shares of RSM Tenon fell as much as 30 per cent after it announced expression of interest from Baker Tilly. RSM Tenon is struggling with its £80 million debt burden from taking out other enterprises around the UK. The company is currently the seventh largest accountancy firm in the UK and has three offices in Scotland.

RSM Tenon has cut hundreds of jobs in an effort to cut costs and improve its earnings but said that it would require the support of Lloyds Banking Group to revive operations. The company almost faced a collapse in the previous year after it recorded significant errors in its books and is likely to be acquired by a rival firm in the industry.

The shares of the company were trading down 1.05p at just 2.38p after touching 66p just two years earlier. RSM Tenon and Baker Tilly have said that the two companies have not finalised any deal and there is not a certainty that a takeover deal would be closed between the two sides.