28th Apr 2015 06:47
LONDON (Alliance News) - Alliance Trust PLC Tuesday said it has agreed to appoint two of the directors nominated to its board by activist shareholder Elliott Advisors (UK) Ltd, a move that marks a compromise in their disagreement ahead of the trust's annual meeting of shareholders.
Elliott's criticisms of Alliance Trust have led to a public spat that has forced the trust to defend its performance against peers. The activist shareholder, which has built up a 12% stake in Alliance Trust, has now agreed to withdraw its three resolutions from the trust's annual meeting scheduled for Wednesday and to back the other resolutions proposed by the board.
In a statement, Alliance Trust said that it has agreed "certain mutual non-disparagement undertakings" with Elliott and that the shareholder will not call a general meeting or "seek to agitate" against the company, board or management in public until after the trust's 2016 annual meeting at the earliest.
The trust said it has agreed to appoint Anthony Brooke, the former SG Warburg executive, and Rory Macnamara, previously of Morgan Grenfell, to its board. Elliott had also proposed the appointment of Peter Chambers, the former chief executive of Legal & General Investment Management, but he has agreed to stand aside as a candidate.
Alliance Trust said it has "accelerated" the process to appoint an additional independent non-executive director, and will consult its major shareholders when making its decision.
"On behalf of the whole board, I would like to express my gratitude to our shareholders for engaging with us on this important issue. Having considered this feedback we have worked with Elliott to find a compromise which we believe is in the best interests of all our shareholders," Karin Forseke, who chairs Alliance Trust, said in a statement.
Elliott said it "acknowledges and appreciates the widespread engagement and support from fellow shareholders of the company and others in recent weeks. We believe that this solution is in the best interests of all shareholders".
By Samuel Agini; [email protected]; @samuelagini
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