In the battle between Liontrust and activist investors for control of Swiss asset manager GAM, Liontrust confirmed its offer of shares is final and will not be increased. The main offer period was extended by three days.

Liontrust is holding firm on its offer to acquire Swiss asset manager GAM, confirming on Monday that it's «full and final» and will not be increased, according to a statement from GAM.

At the same time, GAM chairman David Jacob said «I acknowledge that this has been a challenging journey for shareholders. However, at this critical point, I urge you to tender your shares into the Liontrust Offer. By doing this, you protect your investment and have the opportunity to participate in the future value creation from the enlarged firm.»

On July 18, an activist investor group consisting of Newgame and Bruellen controlling 9.6 percent of GAM's share capital floated a partial cash offer for 28 million shares of GAM at 55 centimes per share. That's a 29.1 percent premium to the offer made by Liontrust, representing a volume of approximately 15.4 million Swiss francs.

Fund Manager Support

In response to the offer from Newgame, senior GAM fund managers reiterated their support for the offer from Liontrust, saying it's in the best interests of GAM's clients.

In staking out its position, GAM says that its activities as a going concern are viable only if Liontrust's public tender offer is declared successful. At the same time, a loan from Liontrust and a «detailed» business plan keeps GAM viable. It calls Newgame's recent interest in GAM «speculative» with the proposal risking GAM's future.

The investor Group calls the Liontrust offer «unfair,» and believes there's value to be unlocked from GAM. They intend to effect a turnaround at GAM and are challenging the decision of the Swiss Takeover Board (TOB) for Liontrust's offer to acquire it in an all-share transaction.

Three Day Extension

To give shareholders more time to consider their position, Liontrust is extending the offer period by three days to July 28. It says this will allow consideration of their position and «fully weigh up the going concern implications for GAM if insufficient shares are tendered.»

One of the sticking points of the deal and hurdles to be overcome was GAM successfully unloading its Fund Management Services (FMS) business. As finews.com reported on June 29, GAM reached a definitive deal to do so.

With that, «further positive step» completed, GAM anticipates «shareholders will make the decision to tender their shares over the critical final days of the main offer period,» according to the statement.