Troubled asset manager GAM has vetted the appetite of rivals. But they aren't going to splash out big time, it seems.
Since star fund manager Tim Haywood was suspended, with subsequent closures of funds and outflows of assets, GAM has been in trouble. The shares lost 60 percent of their value year-to-date. Observers say it is a takeover candidate.
One of the interested parties is U.K. asset manager Schroders, according to a report by «Financial Times» (behind paywall). The newspaper said that Schroders had made a bid for the Systematic division, which mainly means Cantab, the quantitative hedge fund.
Cantab: Expensive Acquisition
GAM reportedly refused the offer because it would make the sale of the rest of the firm much harder. The acquisition of Cantab was one of several by CEO Alex Friedman that haven’t turned out quite as successful as he expected. GAM in the first half of this year wrote down 59 million Swiss francs ($59 million) in relation to the Cantab acquisition.
The write-down has made the Systematic division worth less in financial terms, making it more attractive for potential buyers such as Schroders hunting for cut-price investments.
