Alliance Trust confirms RIT Capital's informal merger approach

31st May 2016 07:10

(ShareCast News) - Alliance Trust said it has received an unsolicited, informal approach from fellow FTSE 250 investment trust RIT Capital Partners that proposed a merger of the two companies. Alliance stressed that "no detailed terms" were provided by RIT and it will incorporate any formal offer within its recently started internal strategic review. Directors added that as there could be no certainty that any transaction will result from the strategic review, shareholders were strongly advised to take no action and to await the outcome of its review.In its own statement, RIT added that the possibility of a merger was only at the "preliminary stage of consideration" and that further talks were needed to confirm a deal was in the best interests of shareholders and could be profitably achieved. Share buybacks by Alliance will be suspended as it is now in a formal offer period.