Baker Tilly has decided against making an offer to buy rival RSM Tenon outright, but has not ruled out a future deal involving parts or all of the troubled top ten firm.

In late July Baker Tilly said it was reviewing the potential opportunity of making an offer for RSM Tenon, which is heavily indebted.

Under City takeover rules, the deadline for declaring whether or not it would go ahead with the bid was 22 August, and in a statement released when the London Stock Exchange (LSE) opened this morning, Baker Tilly confirmed that it does not intend to make an offer for the entire issued share capital RSM Tenon.

The statement says: 'Baker Tilly remains of the view that there is significant value in the RSM Tenon group and continues to be interested in an alternative potential transaction involving an acquisition of part or all of the business of the RSM Tenon group provided that such alternative potential transaction does not constitute an offer falling within the jurisdiction of the City Code.'

A subsequent LSE statement said the Financial Conduct Authority had temporarily suspended shares in RSM Tenon at the company's request pending an announcement.