Shares in Liontrust (LIO) leapt 11% to 674p after the UK asset management firm admitted its attempt to take over troubled Swiss rival GAM (GAM:SWX) was dead in the water.

Shares in GAM rose 4% to CHF 0.47 on the news in morning trading.

Liontrust shares remain in the doldrums as GAM takeover sees new twist

NO DEAL

The UK firm only won the backing of 33.45% of GAM shareholders against the minimum acceptance level of 66.6% for the bid to go ahead.

Liontrust chief executive John Ions commented: ‘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 expects to declare the offer unsuccessful on 29 August 2023,’ the company added in a statement.

As a result of its offer being rejected, the firm will incur a one-off exceptional charge of ‘not more than £11 million’, of which around £2 million was set aside in the financial year ended in March 2023.

In an effort to appease shareholders, Liontrust said it would continue to target a dividend of ‘at least 72p per share’ for the financial year ending 31 March 2024.

GAM RENEWS TALKS WITH RIVAL SUITOR

Following the failure of the Liontrust bid, GAM has resumed discussions with French billionaire Xavier Niel’s shareholder group called NewGAMe.

GAM chairman 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.’

The rejection of the Liontrust offer puts an end to a year-long battle due to cash flow issues and extended deadlines on both sides.

Liontrust’s initial offer valued GAM at CHF 107 million (£96 million), equivalent to CHF 0.67 per share.

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