A GAM investor group has offered the firm an alternative loan facility as a backup if Liontrust Asset Management's buyout offer of the group is unsuccessful.

Anthony Maarek, managing director of Xavier Niel's NJJ Holding, a French-incorporated entity which oversees NewGAMe, the GAM shareholder controlling approximately 9.6% of its shares, wrote to the asset manager's board and board chair David Jacob with a "bridge financing" proposal.

He said the offer "is intended to replace loans made by Liontrust to GAM in the event Liontrust's tender offer for the company is unsuccessful".

GAM labels NewGAMe's proposal withdrawal 'vexatious' and a disruption strategy

In the letter, NewGAMe said it was willing to match the approximately CHF 20m amount that was already agreed in the takeover offer, which would be lent by Rock Investment or its parent company NJJ Holding.

The group said it would be prepared to provide the emergency funding immediately if the Liontrust deal was unsuccessful, but this would only be the case once certain conditions were met, including its request for its candidates to be elected to GAM's board of directors at the forthcoming extraordinary general meeting.

The activist investor group has been in a long battle with GAM and Liontrust over the latter's takeover offer, repeatedly calling for fellow shareholders to vote against the proposals while GAM's board continued to express support for the deal.

GAM shareholders withdraw proposals for EGM

Yesterday (18 August), GAM levied its most recent criticism of NewGAMe's activities, claiming it was attempting to disrupt the bidding process to seek to take control of the firm itself if Liontrust's offer was unsuccessful.

Today, NewGAMe remained steadfast in its position that it was acting in the best interests of GAM, as Albert Saporta, NewGAMe's director, said this bridge loan offer "shows that NewGAMe has a serious and credible plan for GAM and is ready to commit significant funding to ensure the company stays the course".

The investor group also entered into an equity swap transactions with a financial counterparty to increase its stake in GAM, taking on an additional 4.75% of the shares, equalling approximately CHF 7.19m worth of company shares.