2nd Apr 2015 06:53
LONDON (Alliance News) - FTSE 250-listed investment trust Alliance Trust PLC on Thursday reiterated its opposition to the proposals tabled by activist investor Elliott Advisors (UK) Ltd and urged its shareholders to vote against Elliott's requisition to appoint three additional directors to the board.
Alliance Trust's reiteration of its stance came after Elliott Advisors, which holds a 12% stake in the trust, on Tuesday escalated the war of words between the two parties, issuing stern words about the performance, charges and dividends of the trust.
Elliott said that its "forensic" study "dispels" the trust's defence against its proposals and criticisms, adding that a recent shareholder circular issued by the trust "resorts to personal attacks in a manner unbecoming of directors of a public company".
The activist also said its resolve had been strengthened by an open letter to shareholders penned by former non-executive director Tim Ingram that was reported in the Sunday Times.
On Tuesday, Elliott claimed that its use of "authoritative third party data" shows that Alliance Trust has underperformed against competitors and benchmark indices. The activist also criticised the cost to shareholders of the management of the trust's assets, while calling for improvements to the trust's dividend policy and sustainability. In addition, Elliott said that Alliance Trust Chief Executive Katherine Garrett-Cox has been paid more than rivals despite the trust's alleged underperformance.
Alliance Trust defended itself on Thursday, saying its investment performance ranks in the top half of its peer group for the majority of the most oft-cited time periods. It added it believes it provides a high level of transparency over costs and said its dividend track record is "almost unequalled" by any FTSE-listed company in the UK.
By Sam Unsted; [email protected]; @SamUAtAlliance
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