Liontrust Asset Management is exploring a takeover of GAM Holding, its struggling Zurich-listed peer.
Sky News has learnt that Liontrust is among a number of parties which have been actively considering a bid for GAM, which has been engulfed in turmoil linked to the collapse of Greensill Capital, the controversial supply chain finance group.
It was unclear on Tuesday whether Liontrust would table a formal offer for GAM, which Sky News revealed in December had hired UBS to advise on an auction.
GAM – which stands for Global Asset Management – has seen its shares halve in the last year amid uncertainty over its future, and now has a market value of just CHF95m (£85m).
Liontrust, which is valued on the London stock market at £625m, would be a logical buyer of GAM from an industrial perspective, according to industry executives.
However, it too has skirted with corporate governance issues in recent weeks, with two of its non-executive directors recently resigning, reportedly in protest at the 12-year tenure of its chair, Alastair Barbour.
A combination of Liontrust, which is run by chief executive Jon Ions, and GAM would create an asset management group with roughly £100bn under management.
GAM, which also explored a sale four years ago, is scheduled to announce its delayed 2022 results next week alongside its first-quarter interim statement.
David Jacob, GAM chairman, said alongside its most recent quarterly results: “Despite the most challenging market backdrop seen in years, it is pleasing to see the continuing strength in our investment performance and the good progress we have made to simplify our business.
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“Nevertheless, we are constantly reviewing the progress of the firm, and we are committed to ensuring that our strategy is appropriate and in the interests of all our stakeholders.”
Liontrust and GAM both declined to comment.
