Liontrust Asset Management’s proposed takeover of GAM Holding AG has collapsed, after the offer for the Swiss asset manager failed to gain the support of GAM’s shareholders.

The bid is set to be declared unsuccessful on 29 August, Liontrust confirmed.

London-based Liontrust, a specialist independent fund manager, revealed that a total of 53.2 million GAM shares were tendered into its offer over the extended main offer period, which ended yesterday, corresponding to 33.45% of the GAM shares.

Liontrust’s assets under management (AuM) totalled £30.5bn as of 16 June this year. Earlier this month, the group announced that 84% of its shareholders voting had been in favour of the proposed GAM acquisition.

Liontrust chief executive, John Ions, said the firm had 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,” Ions said. “We have always believed that Liontrust’s offer and strategy for ensuring the growth of the combined group is the best way to achieve this.”

He added: “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. We also thank everyone at GAM for working so hard to make our offer succeed.

“We hope that GAM is able to achieve a positive outcome for the business.”

GAM revealed that it is now in talks with representatives of investor group, Newgame, including Rock Investment SAS, Newgame SA and Bruellan SA. These discussions are focused on agreeing short-term bridge financing, which was offered by Rock on 18 August.

The Zurich-based firm said that Newgame had recognised the need to ensure GAM has appropriate and adequate financing to continue as a going concern.

Chairman of GAM Holding AG, David Jacob, said: “The GAM board acknowledges that the majority of our shareholders have not found the Liontrust offer compelling. I am pleased that we have entered constructive and productive discussions with Newgame and that these discussions continue at speed.”

GAM stated that these ongoing discussions remain “constructive and productive” and are expected to conclude shortly.

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