Shares in Liontrust Asset Management (LSE:LIO) jumped 12% in a relief rally as shareholders in target and rival fund manager GAM rejected its takeover bid.
Liontrust received acceptances from just 33.45% of GAM’s shareholders for the £96 million all-paper deal, which had run into significant opposition objections from NewGAMe and Bruellan two of the Swiss group’s main backers.
The deadline had already been extended three times, while the dissidents launched their own partial cash offer in July.
GAM has been listing badly since it was fined for its involvement with failed inventory group Greensill Capital.
The fund manager lost more than Sfr23.5 million (£21mln) in the first half of 2023 and earlier this week said it needed a Sfr100 million cash injection to right the ship.
Liontrust had offered it an £18 million loan as part of its deal, contingent on it going through, and GAM’s management had said the bid was its only viable option to keep going.
Analysts, however, had questioned the strategy behind the deal and whether it was designed to deflect attention from Liontrust’s recent performance, which has seen its own share price fall 46% since February.
John Ions, the UK group’s chief executive, said: "Liontrust made a full and fair offer for GAM, which reflected the financial reality of the business and would have provided a certain and sustainable solution.
"Throughout this process, Liontrust has sought to create corporate and financial stability for GAM and do what is in the best interests of its shareholders, clients and employees.
"We are disappointed we did not win the support of the majority of GAM's shareholders and are grateful to those GAM and Liontrust shareholders who did back our offer. “
Liontrust added the bid failure would mean a one-off exceptional charge of up to £11 million.
Shares rose 13% to 680p.