24th Apr 2023 11:44
(Alliance News) - GAM Holding AG said on Monday it expects to provide an update on or prior to May 4 regarding its possible combination with Liontrust Asset Management PLC.
Noting GAM's annoucement, Liontrust, a London-based asset manager, said there is no certainty that discussions will lead to a formal offer in respect of the proposed acquisition of the entire issued share capital of GAM by Liontrust.
This comes after Liontrust announced last week it was in talks to acquire the Zurich-listed asset manager in order to combine the two businesses.
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 had 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.
Shares in Liontrust were up 1.1% at 850.50 pence each in London on Monday morning.
Shares in GAM were up 0.4% at CHF0.71 each in Zurich.
By Sabrina Penty; Alliance News reporter
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