GAM board labels proposed rival loan 'insufficient' for stabilisation

Loan must be 'significantly higher'

GAM’s board has pushed back against Rock Investments offer to replace the loans put forward by Liontrust Asset Management, stating that the firm needs “in excess” of CHF 100m (£89.1m) to continue functioning.

Last week (17 August), Rock wrote to GAM to propose short-term bridge financing should be made available if the Liontrust offer fails. Rock's offer was made in response to a loan provided by Liontrust to GAM as part of the former's takeover deal, which GAM has argued was essential for the survival of its business, and Rock had previously suggested was a conflict of interest. The firm is part of NJJ Holding, which oversees NewGAMe, a GAM shareholder group which has repeatedly objected to the proposed Liontrust takeover offer. GAM shareholders offer new loan facility to replace Liont...