Brewin Dolphin held crisis talks with Alliance Trust last week as it called for the company to initiate further share buybacks to tighten its wide discount.
The stockbroker held a conference call with Alliance Trust to voice its concerns over the stake being built up by activist investors Laxey Partners. Since the start of the year Laxey, which has a 1.5% stake in the €2.8bn trust, has called for the board to introduce share buybacks if the trust’s discount to net asset value exceeds 10%. The group believes a discount control mechanism (DCM) such as this will enhance the trust’s share revenue and increase dividends per share. New York-based activist investor Elliott International now has a 3% stake in the trust, and other investors are a...
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