GAM labels NewGAMe's proposal withdrawal 'vexatious' and a disruption strategy
n the letter, GAM insisted that NewGAMe is not a credible alternative path for GAM or its shareholders.
The letter to shareholders sent out today (17 August) comes after months of back and forth between the asset manager's board and the investor group and a week after the latter formally asked to cancel the EGM that was due to take place tomorrow (18 August).
The EGM had first been called by shareholder Rock Investment, which is a part of NewGAMe, in early June. This would have allowed shareholders to vote on the conditions of NewGAMe's partial offer.
However, on 9 August, NewGAMe withdrew all of their proposals, an action which GAM said was only performed to disrupt the Liontrust offer so that the group could seek to take control of GAM if the Liontrust offer is not declared successful.
GAM shareholders withdraw proposals for EGM
In the letter, GAM insisted that NewGAMe was not a credible alternative path for the firm or its shareholders and while there are many reasons for this lack of credibility, the most important is that the group has «not committed the financial support required to maintain GAM as a going concern».
It also called NewGAMe's decision to withdraw its proposals a «vexatious use of shareholder rights» while reasserting three points as to why they were not, and still are not, a viable option, as follows:
1) It is highly uncertain that another EGM could be convened in time to address GAM's financial position.
2) NewGAMe has not carried out detailed due diligence and we do not believe that their financial assumptions are founded on a viable factual basis.
3) NewGAMe recently published a ‘100-day plan' which we believe is unrealistic, insufficiently funded and presents a significant risk to
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