Laxey Partners has sent out a letter to Alliance Trust shareholders arguing for the introduction of share buybacks if the trust's discount to net asset value exceeds 10%.
Stepping up its spat with the board of the £2.4bn investment trust, activist investor Laxey told shareholders the measure was necessary to address the trust's "consistently wide discount" and "poor comparison" against its peer group. Share buybacks would reduce the number of shares available and reduce the trust's discount. In November the Alliance board rejected an initial proposal from Laxey, arguing in favour of a DCM. Laxey says having a discount control mechanism in place will enhance share revenue and increase dividends per share. Laxey adds it will ensure the price of share...
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