Liontrust Asset Management (LSE:LIO) PLC’s takeover of GAM could be derailed following a challenge by two groups of shareholders in the Swiss asset manager.
NewGAMe and Bruellan control 8.4% of the stock and have concerns around the ‘various exemptions’ accorded the UK group as part of the £96mln all-paper deal.
The dissident investors believe walk-away rights, which kick in if GAM fails to dispose of its fund management services arm, “needlessly favour the bidder and is contrary to the principles of Swiss takeover law”.
Additionally, they argue that under Liontrust's proposed timeline, GAM shareholders are left in a precarious position.
Specifically, they must accept the offer by August 11 but will not receive Liontrust shares in return until the end of the year or later.
This leaves shareholders unable to sell their shares, withdraw their acceptance, or entertain competing offers, it was pointed out.
The group also asserts that the local Takeover Board has overstepped its authority by exempting Liontrust from adhering to minimum price requirements under Swiss takeover rules.
This latter point relates to trades executed by one of its fund management subsidiaries before the offer announcement.
Investors in Liontrust were seemingly unperturbed by the move with the stock changing hands for 810.5p. up 2% on the day.