By Ben Lucas
Swiss asset manager GAM has again called on its shareholders to vote in favour of a takeover bid from UK rival Liontrust as it reported a poor performance for the first half of the year.
GAM today reported net outflows of CHF2.2bn (£2bn) and a pretax loss of CHF22.5m – far steeper than the CHF15.4m loss it recorded in the same period last year.
Liontrust launched a bid for the ailing fund manager in May, but has since ended up in a last minute takeover battle with a group of shareholders called NewGAMe, backed by French tycoon Xavier Niel.
But GAM’s chairman, David Jacob, repeated a plea to shareholders to back Liontrust’s bid to secure its future.
“Our first half results demonstrate the challenges which GAM faces, which are among the reasons why the board continues to recommend the Liontrust offer to GAM shareholders,” Jacob said.
“Our investment teams continue to excel, but the need for corporate stability is essential to give our clients confidence to allocate to our strategies. The stable platform and investment that will be provided by the combined group, once the Liontrust offer is completed, gives our shareholders an opportunity to participate in future value creation,” he added.
