The investor group comprised of NewGAMe and Bruellan has asked the Swiss Takeover Board to impose a final deadline on Liontrust’s bid for GAM.
The investors, who together own 9.6% of GAM, noted the initial tender offer period was due to end on 25 July but was twice extended by Liontrust, most recently to 4 August.
NewGAMe claimed the extensions of the Liontrust offer period mean shareholders are unlikely to know the level of support Liontrust has received before voting on the deal at GAM’s EGM on 18 August.
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In an open letter, written by NewGAMe director Albert Saporta to Liontrust CEO John Ions and published alongside the statement, he said NewGAMe also has concerns about the liquidity and risk management of Liontrust’s Special Situations Fund, which is one of its largest at £4.48bn.
The recent departure of the ex-Majedie team that was managing the Tortoise Fund was another thing highlighted by Saporta as an issue in the letter.
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“Like the many GAM investors we have spoken to over recent weeks, we have no intention of tendering to Liontust’s offer and becoming a shareholder in this risky enterprise,” Saporta said in the letter. “Red flags are popping up everywhere and we encourage fellow GAM shareholders to hold on to their shares and ignore Liontrust and GAM’s fearmongering.”
Liontrust did not immediately offer comment.
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