U-turn? GAM enters financing talks with Xavier Niel-backed group after failed Liontrust takeover
Ailing fund manager GAM has turned to a rebel group of shareholders for emergency funding today despite previously rebuffing the offer and favouring a takeover swoop from London-listed Liontrust.
The Swiss fund manager said in a statement it had entered into “constructive and productive discussions” over financing with a group of shareholders calling themselves NewGAMe, which includes the French tycoon Xavier Niel.
The move comes after a takeover from London-listed money manager Liontrust fell apart this morning after winning the approval of only 33 per cent of shareholders.
GAM’s move towards the Niel-backed group marks a sharp about-turn after it previously called the suggestion unworkable and asked the group to “accept the realities” of its financial position.
“The GAM Board acknowledges that the majority of our shareholders have not found the Liontrust Offer compelling,” said David Jacob, chairman of GAM, this morning.
“I am pleased that we have entered constructive and productive discussions with NewGAMe and that these discussions continue at speed.”
In its previous rebuttal GAM said it was essential that Rock, the shareholder which had provided the original 25CHF convertible bond offer, accept the level of funding needed to stabilise GAM will be likely to be in excess of CHF 100m.
The comments raise the possibility of a more bumper funding offer for GAM now the Liontrust takeover has fallen through.
Liontrust’s failure to snap up GAM brings a close to an extraordinarily hostile battle for control of the firm in which chief John Ions was accused of tactics “bordering illegality” by NewGAMe.
While GAM’s future remains in the balance, the group of rebel shareholders have said this morning the focus “must now shift towards the successful turnaround” of the firm.