FTSE 250 constituent Liontrust Asset Management (LSE:LIO) plc’s board has confirmed rumours of a proposed acquisition of the entire issued share capital of GAM Holdings AG, with the intention of combining GAM's investment management business with Liontrust's investment management business.
Liontrust’s board confirmed it has made an approach to the board of GAM, though “there can be no certainty that this will lead to a formal offer”, nor has the board offered a timeline for the proposed acquisition.
GAM (short for Global Asset Management) has been looking for a buyer in recent months after postponing its results earlier this year in hopes that the extra time would help secure a deal.
Shares in the Swiss asset manager have fallen over 95% since a high-profile 2018 conflict of interest scandal involving former star fund manager Tim Haywood’s Absolute Returen Bond fund and Australian financier Lex Greensill’s now collapsed supply chain finance business Greensill Capital.
GAM surged 20% following today’s confirmation.