Liontrust Asset Management extended its offer period to buy troubled fund house GAM Holding AG for a second time, in a sign it’s struggling to rally the necessary support for a takeover.
(Bloomberg) — Liontrust Asset Management extended its offer period to buy troubled fund house GAM Holding AG for a second time, in a sign it’s struggling to rally the necessary support for a takeover.
London-based Liontrust made the offer in April but has met resistance from key GAM shareholders who don’t endorse the price and logic of the deal. An initial offer deadline of July 25 was extended by three days and is now being pushed back to Aug. 4, Liontrust said in a statement Friday.
GAM, which has struggled to recover from a scandal five years ago, has urged shareholders to accept the all-share deal, valued at 107 million francs ($123 million) in April. Its largest investor Silchester — which holds 17.3% of the company — is supporting the bid. Rival investor group NewGAMe SA, led by French billionaire Xavier Niel, has criticized it and made a partial counteroffer.
“The main offer period is being extended to give additional time for Liontrust to engage in constructive discussions with GAM shareholders, including NewGAMe,” Liontrust said in the statement.
In a seperate announcement, GAM said that the date for an extraordinary general meeting, in which Niel’s group intends to vote in a new board, has been brought forward to Aug. 18.
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