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Swiss franc weighs on GAM’s M&A prowl

The appreciation of the Swiss franc and a large cash surplus is putting pressure on asset manager GAM to pursue acquisition

As the Swiss franc keeps on rising, the cash surplus sitting on the books of Zurich-based GAM is burning a hole in the pocket of the acquisitive asset manager.

GAM currently holds Sfr770m (£585m) in cash on its balance sheet, a small amount of debt, and tangible equity of more than Sfr1bn. This treasure trove has risen in value as the Swiss franc has become a currency safe haven.

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