Alliance says US raider is planning ‘disruption’

Katherine Garrett-Cox, chief executive of Alliance Trust. Picture: Jane Barlow

ALLIANCE Trust yesterday launched a new broadside against the activist investor trying to install three new non-executives on its board, accusing it of planning “disruptive actions” to facilitate an early exit from its 12 per cent shareholding.

US hedge fund Elliott Advisors says it wants new blood on the board in order to improve performance at the Dundee-based investment firm.

But Alliance’s management argues that Elliott’s appointees would not be independent. Yesterday it fulfilled an obligation by sending out a notice from Elliott making the case for a vote at the annual meeting next month, but used the occasion to make its own detailed representations to the 50,000 small shareholders who will decide the matter.

Alliance’s chair, Karin Forseke, said: “We urge all of our shareholders to consider carefully the circular… and encourage them to play an active role in protecting the future of Alliance Trust by voting against the resolutions put forward by Elliott.

“The board is firm in its belief that this is about more than the nomination of directors and that Elliott has plans for disruptive actions.”

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