Billionaire Seeks to Raise GAM Stake in Spat With Liontrust

A key group of investors in GAM Holding AG said it intends to launch a partial public tender offer of 0.55 Swiss franc per share in cash for the troubled Swiss asset manager, in signs of mounting opposition to a takeover bid by Liontrust Asset Management.

(Bloomberg) — A key group of investors in GAM Holding AG said it intends to launch a partial public tender offer of 0.55 Swiss franc per share in cash for the troubled Swiss asset manager, in signs of mounting opposition to a takeover bid by Liontrust Asset Management. 

The The NewGAMe SA and Bruellan shareholder group, which includes French billionaire Xavier Niel, said in a statement Tuesday that the offer for as many as 28 million GAM shares will be made on or around Aug. 17. The investors have contested the Liontrust offer, arguing that it undervalues the company. 

The 28 million shares represent about 17.5% of the issued capital of GAM and the offer price represents a premium of 31.9% to the closing of GAM shares on July 17, the group said in the statement. 

Shares of the Zurich-based asset manager surged more than 17% as of 9:40 a.m. local time on Tuesday, heading for their biggest gain in almost three months.

In May, GAM agreed to sell itself to Liontrust for the equivalent of 107 million Swiss francs ($124.6 million) in an all-share deal that would create a $66 billion global asset manager and end years of turmoil. GAM has recommended shareholders accept the deal. 

But the offer has faced headwinds from shareholders, with GAM’s third-largest investor GEM deciding not to accept Liontrust’s offer, Bloomberg News reported. This comes as the list of disgruntled shareholders continues to grow. 

Read more: GAM Shareholders Question Liontrust Takeover at Angry Meeting

Liontrust’s offer started last month and is expected to conclude on July 25. The offer results are expected to be published in August. 

(Updates with share price in fourth paragraph.)

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