GAM Holding is said to be re-examining a possible sale. The Swiss fund manager's previous attempts have stalled repeatedly.
It's not the first time rumors of a sale have swirled around Swiss asset manager GAM, and it's happening again. The company has hired advisors to assess potential buyer interest, «Bloomberg» (behind paywall) reported citing people familiar.
Although consultations are reportedly underway, potentially interested buyers are not named and it is not certain that a deal will be reached, the report adds. A GAM representative declined to comment to «Bloomberg». The company will report half-year results on August 3.
Unfruitful Talks
While GAM held informal talks with potential buyers in 2018, they came to nothing, the report adds. At the time, the company had experienced heavy fund outflows following the suspension of a former top fund manager.
Talks resumed the following year, with Italian insurer Generali discussed as a possible interested party. In 2020, finews.com investigated whether the firm had mandated the US bank Citigroup to search for a buyer.
Profit Warning Issued
GAM had managed assets of around 83 billion Swiss francs ($86.3 billion) at the end of June, a decline of around 17 percent from the end of last year. The closure of several funds was announced in early July, and for the first half of the year, GAM projected a loss at the operating level.
The share price reacted to the speculation with a rise of almost 11 percent to 1.04 francs. A year ago, the shares were trading at around 2 francs per share, and at the beginning of 2018, they were trading at more than 17 francs.
