Activist Elliott seeks Alliance board shake-up

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Hedge fund Elliott Advisors today named the three non-executive directors it is seeking to have appointed to the board of wealth manager Alliance Trust.

Highlighting its concerns over Dundee-based Alliance Trust’s “persistent underperformance”, Elliott said it has nominated former SG Warburg executive Anthony Brooke, ex-Legal & General Investment Management chief executive Peter Chambers and Rory Macnamara, a former senior corporate finance professional, including at Morgan Grenfell.

Elliott, which has a 12 per cent stake in Alliance, will be seeking to have the three appointed to the firm’s board at its annual meeting on 29 April.

It said: “Representatives from Elliott have met with the company’s executive and non-executive directors on numerous occasions since first becoming a shareholder in 2010, and have frequently interacted with fellow long-term shareholders over the same period.

“Although we remain hopeful that the board will now seek to properly engage with us and embrace these proposals, we have decided to bring the matter directly to shareholders for their consideration. We look forward to communicating with fellow shareholders in the weeks ahead.”

In response, Alliance Trust said: “The board will consider the resolutions in detail and advises shareholders to take no action at this time.”