Alliance Trust/RIT merger talks reaction: 'Different mandates will make this a complicated process'

Two very different mandates

Trust analysts have spoken out following Lord Rothschild's proposal to combine the £2.5bn RIT Capital Partners trust with the £2.6bn Alliance Trust, stating other trusts or "white knights" are more likely to succeed with a merger.

Reports surfaced at the weekend that Lord Rothschild, chairman of RIT, had approached the board of Alliance Trust about a potential merger, and both groups have since issued statements confirming the "informal" discussions emphasising that further analysis needed to be carried out before a formal offer is made. Analysts said this is a "surprise move" by RIT as the trusts have quite different mandates, and could lead to other trusts with more similar mandates to Alliance Trust coming along as potential partners or "white knights". Stifel Funds said: "This is a surprise move by RIT Capi...