Swiss entrepreneur presents alternative to Liontrust bid for GAM (updated)

Gam Holding AG

19/05/2023 13:04

(Adds detail from Taure statement, GAM no comment, background)
       BERLIN, May 19 (Reuters) - Swiss entrepreneur Marco
Garzetti is prepared to invest 65 million Swiss francs ($73
million) in struggling asset manager GAM Holding and provide an
alternative plan to an offer made by British firm Liontrust, his
investment company said on Friday.
    Liontrust Asset Management plc  LIO.L  earlier this month
conditionally agreed to acquire GAM in a deal that values the
Swiss asset manager at 107 million Swiss francs.
    Garzetti's Taure Invest AG said the offer undervalued GAM,
would lead to its breakup, and involved "significant execution
risks". 
    Garzetti and his team proposed to turn around the asset
manager and secure its future as a Swiss-listed independent
company, it added.
    "Marco Garzetti and his colleagues remain prepared to make a
financial and personal commitment should GAM shareholders be
interested in exploring a valid alternative to Liontrust's
offer," Taure said in a statement.
    "I strongly believe that the decision of the GAM Board of
Directors to sell and carve up the company at a poor price is
wrong," the statement quoted Garzetti as saying.
    Under Garzetti's plan, GAM would raise 34 million francs via
a capital increase, which would give Taure a 68% stake in GAM,
and receive a further 34 million as a loan from Taure, in which
Garzetti holds 84%. GAM declined comment on the proposal.
    A group of investors including French billionaire Xavier
Niel had earlier criticised the lack of cash offer from
Liontrust, and pushed for a higher price.
    The group, which jointly holds more than 8% of GAM shares,
informed Swiss regulators earlier this week of their intention
to increase that stake to more than 10%.
    ($1 = 0.8889 Swiss francs)

 (Reporting by Oliver Hirt; Writing by Rachel More and Tomasz
Janowski; Editing by Bartosz Dabrowski, Jason Neely and Jan
Harvey)
 ((rachel.more@thomsonreuters.com;))