Liontrust’s potential takeover of GAM may be opposed by a newly-formed group of investors based in Geneva.
NewGAMe SA, a company controlled by the personal holding company of billionaire investor Xavier Niel, and wealth manager Bruellan, have joined forces for “the sole purpose of coordinating certain decisions in relation to the participants’ stake in GAM Holding AG”.
The parties hold a 7.5% stake in GAM between them and said they invested in it because they see an opportunity to “restore the company’s reputation as a best-in-class asset management firm”.
The investor group is led by Albert Saporta, a hedge fund industry veteran with 40 years’ experience.
In a stock exchange announcement the investors said: “The group is convinced that GAM’s shares are undervalued and offer significant upside to shareholders if the company can complete a successful turnaround and prioritise core businesses of UHNW wealth management and specialist asset management within a more efficient corporate structure.
“The group is convinced that any strategic transaction recommended by GAM’s board of directors must reflect this potential.”
Earlier this week, GAM delayed publication of its results as it continues takeover talks with Liontrust Asset Management and other suitors.