NewGAMe accuses Liontrust CEO of 'bordering illegality' with 'misleading' communications
CEO of Liontrust John Ions (pictured) has been accused of spreading 'misleading information' over investor views of NewGAMe
In a letter to shareholders sent on Tuesday (22 August), the investor group alleged that Ions had lied in a letter to GAM shareholders about the views of one of the firm's major external managers.
On 20 August, Liontrust head of corporate development David Boyle contacted a number of GAM shareholders in Ions' name.
In an email, Ions said he had discussed the scenario in which the Liontrust bid fails and NewGAMe acquires a partial stake in GAM with John Seo, co-founder and managing director of Fermat Capital, a key third-party manager for which GAM undertakes distribution outside the US.
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Ions claimed that should NewGAMe achieve its ambitions, Fermat would seriously consider terminating its relationship with GAM, particularly as Seo would not do business with people «he does not trust».
The CEO stated he had been in «regular contact» with Seo, adding he had been «very supportive of the Liontrust offer and equally as frustrated with the NewGAMe approach and the lack of understanding of the business requirements».
Ions then alleged that Seo had «no contact» with NewGAMe and had «questioned the integrity» of the investor group.
This meant that Seo was «in no mind to lunge straight into a relationship with people he does not trust and, therefore, is seriously thinking about giving GAM notice if NewGAMe prevail», Ions wrote.
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As a result of the letter, director of NewGAMe Albert Saporta contacted Seo on 21 August, to alert him of the «kind of email
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