Liontrust has extended the deadline for its proposed takeover of Gam for the third time, as it fought resistance from rebel investors.
In an update today (August 4), it said the offer period will now close on August 23, almost a month later than the original deadline of July 25 which had previously been pushed back to today.
It comes a day after Swiss asset management company, Gam, published its half year results which showed it suffered a net loss of SFr71.2mn (£1.08mn).
The deal has been opposed by rebel investor group NewGAMe and Bruellan which launched its own partial cash counter offer on July 18.
In the statement, Liontrust said Gam shareholders will be presented with “two very different options” for the future of the company at its extraordinary general meeting on August 18.
CEO John Ions has also written an open letter to NJJ, the ultimate controller of NewGAMe via Rock Investments.
In the letter, he criticises a 100 day turnaround plan published by the rebel group on Thursday (August 3).
Ions wrote: “This presentation fails to provide the necessary detail on how NewGAMe will provide financial certainty for GAM and fund the required restructuring of the company while also ensuring it is a growing and profitable business.
“NewGAMe should explain why performing due diligence only after taking control of a business is not to be considered irresponsible.”
He went on to say the extension of the offer period gives shareholders a chance to make a “straight choice” between the two proposals.
NewGAMe has called on investors not to accept the offer on the table from Liontrust.
Antoine Spillmann, CEO and partner at Bruellan and the investor group's proposed candidate for chairman of GAM's board, said: "Our 100-day plan is a key part of the turnaround of GAM and will bring both certainty and security to the business – including SFr25mn of immediate funding and a top team to lead the turnaround. We urge investors not to tender to the dilutive and value-destructive Liontrust offer.”
tara.o'connor@ft.com
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