Only 33.45% of shareholders in Switzerland-based GAM voted in favour of the Liontrust offer, not enough for the offer to be accepted.

In a statement today Liontrust said: “Based on the provisional interim result as outlined herein, the Offer Condition on the minimum acceptance level of the Offer is not satisfied. Unless the definitive interim result deviates from the provisional interim result as outlined herein so that the Offer Condition on the minimum acceptance level1 of the Offer is satisfied, Liontrust currently expects to declare the Offer unsuccessful on 29 August 2023.”

John Ions, chief executive of Liontrust, said: "Liontrust made a full and fair offer for GAM, which reflected the financial reality of the business and would have provided a certain and sustainable solution.

"Throughout this process, Liontrust has sought to create corporate and financial stability for GAM and do what is in the best interests of its shareholders, clients and employees. We have always believed that Liontrust's offer and strategy for ensuring the growth of the combined group is the best way to achieve this.

"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. We also thank everyone at GAM for working so hard to make our Offer succeed. We hope that GAM is able to achieve a positive outcome for the business.

"GAM presented the opportunity to accelerate Liontrust's strategic objectives. While this is not the result we wanted, our strategy will not change, with a continued focus on expanding distribution and the client base, diversifying the product range, attracting talent and enhancing the investor experience.”

The bid has so far cost Liontrust up to £11m in legal fees and costs.

Liontrust now has a number of options including engaging with a group of GAM activist investors opposed to the offer.

In July, the battle for struggling Swiss fund manager GAM took an unexpected turn after investor group NewGAMe and Bruellan made a partial counter offer to Liontrust’s bid, valuing the company higher than the original offer.

The group offered to buy up to 28 million GAM shares, approximately 17.5% of the issued capital of the firm, at Swiss Franc CHF 0.55 (49p) per share.

The investor group said the offer would be paid in cash compared to Liontrust's share offer.

NewGAMe is led by Albert Saporta, a hedge fund industry veteran with 40 years’ experience in global financial markets. Bruellan is an independent provider of global wealth management solutions, headquartered in Geneva.

NewGAMe says the Liontrust offer undervalued GAM.

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