Laxey plans fresh attack on Alliance Trust policy

ALLIANCE Trust, the Dundee investment house, faces another challenge to its strategy as activist shareholder Laxey Partners this week prepares to table a hostile resolution to the firm's annual meeting.

Laxey, which last month wrote to the trust's board arguing for a discount control mechanism and changes to its contentious employee share scheme, has signalled its intention to take its concerns straight to shareholders.

It is drawing up a resolution, to be put forward this week, that will force a debate of the issues at the FTSE-100 trust's annual general meeting - likely to be held in May.

The rebellious shareholder has long called for the firm, headed by Katherine Garrett-Cox, to buy back shares and alter its staff share scheme, which Laxey believes hands too much power to management.

Lesley Knox, chairman of Britain's largest investment trust, denied Laxey's arguments in a letter to the shareholder last week. But Laxey has vowed not to let the matter lie and has also set up a shareholder action group.

The action group's website says: "Laxey Partners have been contacted by a large number of shareholders expressing support for our proposals and dissatisfaction with the actions of the board in relation to the company's discount, performance and voting structure."

A spokesman for Alliance Trust said: "Our public stance on share buy-back hasn't changed. We have a policy in place and we are sticking to that."

Laxey Partners account for 1.3 per cent of the trust's shares.