18th Apr 2023 13:43
(Alliance News) - Liontrust Asset Management PLC on Tuesday confirmed it is in talks to acquire asset manager GAM Holding AG.
Liontrust said it has made an approach to the Zurich-listed firm's board. There is no certainty that this will result in a firm offer, however, it said.
The London-based asset manager eyes combining GAM's investment management business with its own.
Sky News reported on Tuesday that Liontrust was among a number of firms circling GAM.
Liontrust shares traded 1.3% lower at 949.99 pence each in London on Tuesday afternoon.
GAM shares surged 25% to CHF0.75 each in Zurich on Tuesday afternoon. At that price, it has a market capitalisation of around CHF120.4 million, around GBP108.97 million. Shares are down 349% over the past 12 months.
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 fined GAM International Management Ltd GBP9.1 million for "failing to conduct its business with due care and attention" and not properly managing conflicts of interest. Haywood himself was fined GBP230,037.
By Eric Cunha, Alliance News news editor
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