Boussard & Gavaudan Holding Limited : Updat...

31 October 2008

Update on proposed switching mechanism

Since its  announcement on  17 September  2008, Boussard  &  Gavaudan
Holding  Limited  (the  "Company")  has,  together  with  its   legal
advisers, been in  discussions with the  regulatory authorities  with
regard to  its  proposal  to  make available  a  facility  to  permit
shareholders to  switch  their ordinary  shares  in the  Company  for
shares in the Sark Fund, the  underlying fund in which the  Company's
assets are primarily invested.

The Company  continues to  believe that  it would,  in principle,  be
beneficial to  shareholders to  effect a  structure of  this  nature,
since it would mitigate a  significant amount of selling pressure  to
which the Company's  shares are currently  subject.  However, it  has
become apparent that legal and regulatory requirements are such  that
it is not practical to proceed with this proposal.

The Company's Directors believe,  therefore, that the  implementation
of a switching  mechanism is  not viable at  this time  and that  the
interests of  shareholders  will  be best  served  by  the  continued
implementation of  the  Company's discount  management  policy.   The
Company's authority to make market purchases of up to 14.99 per cent.
of each  class of  its shares  was renewed  at today's  extraordinary
general  meeting.    The  Board   intends   to  convene   a   further
extraordinary general meeting in November to refresh that authority.

For further information, please contact:

B&G Asset Management                             [phone]
Emmanuel Gavaudan

www.bgholdingltd.com

The Company  is  established  as a  closed-ended  investment  company
domiciled  in  Guernsey.  The  Company  has  received  the  necessary
approval of the Guernsey Financial Services Commission and the States
of Guernsey Policy Council. The Company is registered with the  Dutch
Authority for the Financial Markets as a collective investment scheme
pursuant to  article  2:73 in  conjunction  with 2:66  of  the  Dutch
Financial Supervision  Act (Wet  op  het financieel  toezicht).   All
investments are subject to risk. Past performance is no guarantee  of
future returns.  Prospective investors  are  advised to  seek  expert
legal, financial, tax and other professional advice before making any
investment decision. The value of investments may fluctuate.  Results
achieved in the past are no guarantee of future results.




http://hugin.info/139013/R/1265380/278419.pdf


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