Laxey takes on Alliance Trust

29th Dec 2010 16:36

Activist investor Laxey Partners and associated entities are putting forward two resolutions to the Alliance Trust AGM in 2011. In November, Laxey notified Alliance Trust of its intention to bring forward these resolutions. The first resolution is "to require the Board to introduce a discount control mechanism by buying back the shares of the company whenever the discount to Net Asset Value exceeds 10% during normal market conditions". The second resolution is "to revise the voting rights in each of the savings schemes run by the company's subsidiaries".Laxey's stakes total 0.06% of the Alliance Trust share capital and the directors own slightly more than that. Alliance Trust Savings Ltd owns 21.5% and the next largest shareholders are DC Thomson with 5.6% and Legal & General with 4.1%.The NAV was 451p a share at the end of trading on Christmas Eve. The share price has fallen 0.4p to 375.2p. The shares went ex-dividend today. The third quarter dividend is 2.06p a share. Alliance Trust's board says that it will recommend voting against the requisitioned resolutions and it will set out its reasons when the AGM notice is published. The AGM is scheduled for 20 May 2011.