Swiss Fund Manager’s Board Plans to Resign After UK Rival Liontrust’s Takeover Bid Collapses
A struggling Swiss fund manager’s entire board plans to resign after a takeover bid by UK rival Liontrust collapsed under pressure from a rebel investor group.
Ailing GAM announced that the activist group, which includes Rock Investment and wealth manager Bruellan and is headed by French telecoms billionaire Xavier Niel, will propose new board directors at an emergency general meeting in September.
Shareholders rejected the Liontrust deal last week, with only 33.5% voting in favor.
The group led by Niel criticized the offer, stating that it undervalued GAM and did not recognize the potential value generated by a turnaround for shareholders.
GAM has faced a tumultuous few years since its involvement in a scandal at collapsed lender Greensill Capital in 2018.
French telecoms billionaire Xavier Niel (pictured) – is leading a rebel investor group which is set to propose new GAM board directors at an emergency general meeting in September
This led to a multi-million-pound fine and the departure of former star manager Tim Haywood and chief executive Alexander Friedman.
GAM had emphasized that the success of the Liontrust offer was crucial to its ability to “continue as a going concern” and urged shareholders to support the proposals.
All of GAM’s board members plan to resign when the new directors are elected at the end of next month.
The existing board recommends that shareholders approve the election of the proposed directors.
Following the failure of the takeover deal, GAM will have to repay a £8.9 million loan, plus interest, to Liontrust within 30 days.
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