BDO slammed for Shore Capital deal failings
The Financial Services Authority (FSA) has censured BDO for failing to give proper advice to Shore Capital during its 2009 takeover of Puma Brandenburg.
The accountancy firm advised Shore Capital to proceed with its bid for German property group Puma Bradenburg without declaring the deal as a reverse takeover.
This is the first public censure of a sponsor by the FSA, where BDO’s conduct did not satisfy the requirements under the Listing Rules.
Shares in Shore Capital - which is run by Conservative Party donor Howard Shore - are listed on the LSE.
According to the FSA, BDO should have asked the UK Listing Authority whether trading in Shore Capital's shares should be suspended because of the significant size of the target company and due to the lack of information available on the public company.