Alliance Trust reaches 'compromise' with Elliott Advisers

28th Apr 2015 07:35

After a bitter battle, Dundee-based Alliance Trust has reached a "compromise" with its activist major investor Elliott Advisers, allowing two of the US hedge fund's partners onto the board.Elliott, which had criticised the board for its under-performing investments and over-inflating their pay, has in exchange agreed to withdraw its three resolutions proposing new members to be added to the board of Alliance ahead of the companies annual general meeting this week.The US firm's Anthony Brooke and Rory Macnamara will join the board once they have gained the necessary regulatory approvals.Alliance chair Karin Forseke thanked 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. I would also like to welcome Anthony and Rory to the Board where their significant experience will be a considerable asset."Alliance has avoided a vote at the company's annual general meeting on Tuesday morning.