Swiss Asset Manager GAM reported a much wider first-quarter loss as the result of a non-cash impairment charge.
Zurich-based GAM said it booked a 63.2 million Swiss franc loss ($70.4 million) loss attributable to shareholders in the first quarter, widening from the 7.8 million loss in the same quarter a year ago, according to a statement from GAM on Wednesday.
The main reason for the loss was a 48.6 million francs non-cash impairment charge with «respect to the brand intangible,» reflecting the drop in the company's share price from December 31 to March 31, according to the statement.
Liontrust Offer
GAM is reporting the results in connection with the offer by Liontrust to purchase GAM with Liontrust shares. By doing so, it ensures that GAM's most recent published results are less than six months old at the end of the main offer period scheduled to lapse on July 25.
A group of investors consisting of Bruellan, Newgame, Rock Investment, and Phoenix Insurance is opposed to the deal, preferring instead to turn the company around. It is also expecting the Swiss takeover commission to declare various conditions of the offer invalid.
A Fair Offer
Liontrust CEO John Ions that his company's offer for GAM is «more than fair» in an interview with finews.com.
Rock Investment requested GAM hold an extraordinary general meeting which, in response, GAM said it will hold one on August 25.
Assets under management were 71.1 billion Swiss francs at the end of the first quarter, down from 75.0 at the end of last year, confirming the figures GAM reported on May 4.
