Liontrust Responds to GAM Speculation

London-based Liontrust said there is no certainty that discussions with the Swiss asset manager will lead to a formal offer

Alliance News 24 April, 2023 | 3:56PM
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Swiss asset manager GAM (GAM) said on Monday it expects to provide an update on or prior to May 4 regarding its possible combination with UK-listed Liontrust Asset Management (LIO).

Noting GAM's annoucement, Liontrust, a London-based asset manager, said there is no certainty that discussions will lead to a formal offer in respect of the proposed acquisition of the entire issued share capital of GAM by Liontrust.

This comes after Liontrust announced last week it was in talks to acquire the Zurich-listed asset manager in order to combine the two businesses.

GAM has struggled in recent years, worsened by turmoil of supply chain finance firm Greensill Capital. GAM in March 2021 closed the GAM Greensill Supply Chain Finance fund to subscriptions and redemptions as a result.

Before that, it ousted one-time investment director business unit head Tim Haywood head in February 2019 following a probe into misconduct.

The UK Financial Conduct Authority in March 2022 said it had fined GAM International Management Ltd £9.1 million for "failing to conduct its business with due care and attention" and not properly managing conflicts of interest. Haywood himself was fined £230,037.

GAM shares are up 42% this month following the takeover talk.

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