Accountant breaches takeover code.
An accountant has been found guilty of breaching the takeover code when he was advising a finance house on the acquisition of component manufacturer Focus Dynamic.
An investigation last week announced Howard Marks FCA, of Surrey-based firm Marks & Co, failed to act reasonably and responsibly in advising his client Corporate Resolve in its bid for Focus Dynamic.
The finance house made a cash offer for the Wales-based company on 27 November 1998, which included a condition that Focus Dynamic make #4m available to pay a special dividend or other distribution to its shareholders.
On 5 February, Corporate Resolve announced its offer had lapsed, and withdrew its loan note and share offer with immediate effect.
The probe found Marks failed to take ‘all reasonable steps’ to assure himself that Focus Dynamics had access to #4m, and did not complete a thorough investigation to ensure Corporate Resolve had sufficient financing to make the purchase.
Marks said: ‘I reject the findings of the Takeover Panel’s investigation.’