Swiss entrepreneur Marco Garzetti has reignited the battle for struggling Swiss fund supervisor GAM by saying he would do “no matter it takes” to maintain the Swiss fund administration group unbiased.
He made the assertion in an open letter to GAM shareholders on Friday.
The Swiss agency agreed to be taken over by British rival Liontrust earlier this month in an estimated £96m deal, with the acquisition anticipated to finish within the closing quarter of this yr.
However Mr Garzetti mentioned his funding agency, Taure Make investments AG, would make investments £58m in GAM Holding in an alternate plan to Liontrust’s provide.
He mentioned the British agency’s provide undervalued GAM, would result in its breakup and concerned “vital execution dangers.”
He wrote: “I’m satisfied GAM will proceed to have many benefits as an unbiased Swiss asset administration firm sooner or later.”
After the letter was printed on Friday, GAM confirmed that it had rejected Mr Garzetti’s provide, first made on 3 Could, “as a result of it materially undervalued the agency.”
GAM mentioned its board strongly really useful the Liontrust provide to shareholders.
David Jacob, chairman of GAM Holding AG, mentioned: “The provide from Liontrust has been nicely acquired by shoppers and is strongly supported by GAM’s portfolio managers which allows GAM to maneuver ahead with stability as a part of a mixed enterprise with Liontrust.”
“The Liontrust provide was deemed by the board to be one of the best for all stakeholders. The ensuing enterprise can have a powerful steadiness sheet, a broader array of wonderful funding merchandise, and a worldwide distribution footprint from which to ship development, by which our shareholders can take part sooner or later”.
GAM has had a turbulent few years, hit by a falling share value and buyer outflows.
It’s headquartered in Zurich, employs 594 individuals in 14 nations and has UK funding centres in London and Cambridge.
Liontrust plans to merge the funding administration companies which can have 12 funds with property greater than £1bn (seven managed by Liontrust and 5 by GAM).
The fund supervisor intends to rebrand all GAM funds as Liontrust.