A dispute has arisen surrounding the potential acquisition of GAM, with an investor group accusing Liontrust of spreading false information in an attempt to derail their competing offer. The deadline for GAM shareholders to accept Liontrust’s proposed acquisition by GAM is fast approaching. The deal, worth £96 million, would result in a company holding £53 billion in assets under management and a broader range of funds and asset classes. However, NewGAMe and Bruellan, who together own approximately 10% of GAM, argue that the bid is unfairly valued and includes unattractive execution contingencies. They have put forth an alternative proposal that involves issuing a 25 million Swiss francs loan, appointing a new board of directors, and increasing the proportion of high-value investment products. The dispute escalated when an email from Liontrust’s head of corporate development allegedly questioned the integrity of NewGAMe, sparking a reaction from Albert Saporta, CEO of NewGAMe. Saporta published a conversation with the managing director of Fermat Capital, an external manager of GAM, in which the latter expressed shock and disapproval of the email sent by Liontrust. Saporta accused Liontrust of spreading false rumors and information to induce shareholders to accept their offer. As the Liontrust tender deadline approaches, NewGAMe expressed appreciation for shareholders who have seen through GAM and Liontrust’s supposed misleading statements and opted not to tender to the deal. Liontrust acknowledged the email but did not comment on whether their CEO distanced himself from it. The Swiss Takeover Board has been contacted regarding the matter, with accusations of Liontrust going beyond what is ethically and legally acceptable to influence investors. Liontrust Asset Management’s shares saw a moderate increase, although they had experienced a significant decrease over the past two years. The company’s operating profits also declined to £49.3 million over the 12 months ending in March, mainly due to the withdrawal of funds from riskier asset classes amid growing economic uncertainty and interest rate hikes by central banks.
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