The investor group opposing Liontrust’s takeover of Gam has requested an extraordinary general meeting (EGM) to replace the Swiss asset manager’s board.
NewGAMe and Bruellan, who own a 9.2% stake in GAM, have called for a meeting of shareholders “to revoke GAM’s incumbent board and elect a new one with a clear plan to turnaround the business”.
They have requested for the meeting to take place on or around 16 August.
In a statement, the investor group said: “Liontrust’s all-share exchange offer, which has been unanimously recommended by GAM’s current board, significantly undervalues the company, is highly conditional, values GAM’s Fund Management Services business at zero, and may not be completed before the end of 2023 or beyond, if at all.
“The investor group expects GAM shareholders will share this assessment, and as a result reject Liontrust’s inadequate offer by the end of the offer period, currently scheduled to expire on 21 July 2023.
“In this event, GAM’s incumbent directors must take responsibility for this failure and resign. Should they be unwilling to do so, GAM’s shareholders must be given the opportunity to revoke the current board, and replace it.”
GAM confirmed they had received the request from the investor group. The Swiss asset manager’s board reaffirmed its “strong” recommendation that shareholders accept the Liontrust deal.
The investor group initially opposed a key condition of the announced exchange offer which would allow Liontrust to withdraw its proposal if GAM could not offload its Fund Management Services business, which has around CHF 48.4bn (£43.4bn) of third-party fund assets under management.
At the time, NewGAMe and Bruellan said the offer was unfair for GAM shareholders and “needlessly” favoured the bidder. The investor group also raised concerns over the proposed offer’s consistency with Swiss takeover law.
In May, senior GAM portfolio managers penned a letter voicing “strong support” for the acquisition, stating the deal is “highly credible”.
