Alliance Trust has disclosed that activist group Elliott Capital have a 10% interest in the company comprising a 5% holding in Alliance Trust’s shares and a 5% interest held through contracts for difference.
QD comment: The question must be, what is Elliott after? Alliance Trust’s shares are currently trading on a 11.4% discount, having moved up 2.2% today following this announcement. If Elliott convert their CFD into a holding in the shares, they will have a large enough holding to call an EGM and put forward proposals to shareholders. But most resolutions, requiring Alliance Trust to buy back shares more aggressively for example, would require the support of more than 50% of those voting. Are Alliance Trust’s shareholders likely to support any resolution Elliott might put forward? We’ll have to watch this space and see how the situation develops.