GAM, once Europe’s largest fund manager, is the subject of takeover speculation. A group of investors, including French telecom entrepreneur Xavier Niel, has other plans for the crisis-ridden company.
An investor group consisting of Geneva-based Newgame and Swiss asset manager Bruellan announced Thursday that it either holds or has the right to exercise the voting rights of around 12 million GAM shares representing about 7.5 percent of outstanding share capital, according to a statement.
Restoring a Battered Reputation
The group was forged with «the sole purpose of coordinating certain decisions about the participants' stake in GAM Holding.» It invested because it sees «an opportunity to restore the company's reputation as a best-in-class asset management firm.»
Opposed to a Sale
The investment group views the shares as undervalued and offers a significant upside if the company can successfully pull itself out of its nosedive. To do so, it must focus on its core businesses of ultra-high net worth wealth management and specialized asset management as part of a more efficient corporate structure.
The group seems primarily concerned with preventing a hasty sale of GAM which recently confirmed talks with prospective buyers, something the investors appear to be strongly against. «The Group is convinced that any strategic transaction recommended by GAM's board of directors must reflect this potential,» according to the statement.
Later in the day, GAM issued a very sparse statement confirming the purchase, fulfilling a regulatory requirement.
«Newgame SA has announced that it holds or can exercise voting rights for a total of approximately 12 million GAM shares, representing approximately 7.5% of the issued share capital. With this announcement, GAM complies with its obligations pursuant to Article 53 of the Listing Rules of the SIX Exchange,» according to the statement.
Behind the Scenes
The company is controlled by Rock Investment, a subsidiary of NJJ Holding, the personal holding company of French telecom entrepreneur and investor Xavier Niel, and Bruellan. Niel is no stranger to Switzerland, having bought mobile phone provider Orange, now Salt.
The group is led by 40-year hedge fund veteran Albert Saporta, who serves as a Newgame director. The statement went on to say the leadership of Newgame and Bruellan have extensive experience in the global wealth and asset management industries along with corporate turnaround experience.
