LONDON (ShareCast) - (Sharecast News) - The investor group comprised of NewGAMe and Bruellan - which is opposed to Liontrust's takeover of Swiss fund group GAM - said on Tuesday that it plans to increase its stake in GAM from 8.4% to above 10%.
The group said in a statement that it has notified the Swiss Financial Market Supervisory Authority (FINMA) that it intends "to go above the threshold of 10% of the voting rights in GAM".

Earlier this month, the investor group said Liontrust's £96m takeover offer undervalues GAM and "does not reflect the significant upside that a successful turnaround could generate for GAM's current shareholders".

"In addition, the fact that Liontrust only offers its own shares, and is not making any cash offer, implies that GAM shareholders will be subject to the volatility of Liontrust shares without any firm price for a business that has significant intrinsic value," it said.

The investor group also said the deal proposed by Liontrust was subject to "significant execution contingencies", since the risk of an unsuccessful exit of GAM's fund management services business in Luxembourg and Switzerland - "on which almost no information is being provided" - is being shifted to GAM shareholders.

"The investor group is therefore contemplating not to accept Liontrust's offer under the current terms," it said.

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