London-listed asset manager Liontrust is in talks to snap up its Swiss rival GAM Holding, the firms confirmed today.
The FTSE 250 firm said it had “made an approach” to the board of Zurich-listed GAM to acquire the firm, after Sky News first reported the news this morning.
“There can be no certainty that this will lead to a formal offer in respect of the proposed acquisition, nor as to the timing or terms of any such offer and there can be no assurance that, even if agreement is reached, any such Proposed Acquisition would be completed,” Liontrust said in a statement.
A further announcement would be made “as and when appropriate”, the firm added.
The discussions comes after a turbulent period for GAM in which it has been rocked by its ties to now-collapsed supply chain finance firm Greensill Capital.
Shares in GAM had collapsed more than 45 per cent in the year up to Monday. However, news of the deal sent shares up 15 per cent today, valuing the firm at around £99.5m (11mCHF).
GAM confirmed the takeover approach and said its board was “working tirelessly on options to ensure that the firm is strategically positioned in the best interests of all stakeholders”.
The deal would create a money manager with around £100bn in assets under management and comes amid a flurry of consolidation in the sector after a bruising period for asset managers.
News of a potential deal comes after Rathbones and Investec struck a deal to merge their wealth management businesses to create a £100bn investor.