GAM hits back at shareholders 'conflict of interest' suggestions
'To enable the GAM Group to continue as a going concern it was essential that GAM Holding AG secured liquidity for the group,' the board wrote.
In a letter to one of its largest shareholders today (2 August), Rock Investment SAS, GAM's board argued that the £8.9m loan it had accepted from Liontrust did not constitute a conflict of interest in the proposed takeover.
GAM investor group calls for takeover board to impose final deadline on Liontrust deal
«To enable the GAM Group to continue as a going concern it was essential that GAM Holding AG secured liquidity for the group,» it wrote.
«The board does not consider it a conflict of interest to enter into such loan facilities with a third party which subsequently makes a public tender offer for all the publicly held shares of GAM Holding.»
GAM said it had explored «several avenues» for the loan but found «no other solutions» which were available in the proposed timeframe with «acceptable conditions».
Rock Investment, which is made up of two Geneva-based companies, has formally challenged the decision of the Swiss Takeover Board regarding the takeover.
The investor group has called for an extraordinary general meeting on the matter, which GAM had moved forward to 18 August from 25 August.
'Infuriated' GAM investor group hits back at Liontrust in emotional open letter to shareholders
Rock Investment and fellow investor group NewGAMe have both pushed for a restructuring of GAM rather than a sale, arguing that the offer from Liontrust undervalues the business.
Part of the offer from Liontrust required GAM to sell its fund management services (FMS) business, which was dropped last week, despite the sale already being underway.
Responding to Rock Investment's questions, GAM
Read more on investmentweek.co.uk
