GAM shareholders rejected Liontrust Asset Management's offer to acquire the Swiss money manager, following months of uncertainty. GAM is now pursuing a bridge financing arrangement with an investor group.
In May, U.K. money manager Liontrust announced it agreed to acquire GAM in a 107 million Swiss francs ($122 million) deal.
Liontrust, which has £33.8 billion ($42.9 billion) in assets under management and administration, would have added about $26 billion in AUM from GAM.
David Jacob, chairman of GAM, said in a news release Thursday that the majority of GAM's shareholders have not found the offer from Liontrust "compelling." The offer for GAM had gathered support from 33.45% of shareholders.
The deal is expected to be announced "unsuccessful" on Aug. 29.
Instead, the GAM board has entered into "constructive and productive" discussions with investor group NewGAMe, which are focused on agreeing to short-term bridge financing, it said in the release.
In addition, NewGAMe has recognized the need to ensure that GAM has appropriate and adequate financing to continue as a going concern, the release said.
"I am pleased that we have entered constructive and productive discussions with NewGAMe and that these discussions continue at speed," Mr. Jacob said in the release.
NewGAMe proposals are expected at a future extraordinary general meeting. The investor group holds about 9.6% of GAM shares.
In response to the decision, John Ions, CEO of Liontrust, said in a separate news release Thursday: "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."
"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."
