Alliance Trust spends £275,345 on buyback

ALLIANCE Trust yesterday spent £275,345 in a small share buyback amid growing pressure Ifrom an activist shareholder for a wider purchase of shares.

It acquired 75,000 ordinary shares at 367.1267p each but the firm denied the decision was related to a campaign by activist investor Laxey Partners to see it implement a share buyback discount control mechanism.

Katherine Garrett-Cox, chief executive of Alliance Trust, said: "Share buybacks are one of a number of investment tools we have in place to create long-term value for our shareholders. Our decision to buy back shares demonstrates a more active execution of this element of our investment strategy."

James Brown, a research analyst at Winterflood Securities, said the deal represented a "departure" from the firm's policy on buying its shares. "They have done buybacks in the past but they have been four million and six million at a time."

In March Alliance Trust spent 19.7m on its own shares after publisher DC Thomson put part of its stake in the firm up for sale.