Fund manager Liontrust Asset Management (LIO) has seen its shares halve in the last six months, which is providing a headwind for its proposed takeover of struggling Swiss asset manager GAM (GAM:SWX).Liontrust’s offer is based on issuing 9.4 million shares to GAM’s shareholders which on the day of the original takeover offer (4 May) valued GAM at CHF 107 million (£96 million), equivalent to CHF 0.67 per share. Liontrust’s shares have subsequently dropped, lowering the value of the proposed offer to CHF 0.45 per share.

Investors seem unconvinced the proposed deal is a great one which partly explains weakness in the shares. Meanwhile NewGAMe, controlled by French billionaire Xavier Niel, is urging shareholders to hold off voting the deal through.

NewGAMe and Geneva wealth manager Bruellan own 9.6% of GAM and have offered CHG 0.55 per share in cash to buy up to a further 17.5% of GAM, representing a chunky premium to Liontrust’s proposed offer.

Liontrust remains resolute, insisting its offer is full and final, arguing it is the best way to give GAM’s shareholders a positive outcome.