Alliance Trust and Elliott Advisors have brokered a last-minute deal to appoint two out of the three non-executive directors requisitioned by Elliott.
With the three non-executives set to be voted on at Alliance Trust’s annual general meeting (AGM) tomorrow, and the result uncertain, the trust and its largest shareholder have agreed to a compromise deal.
Investment Adviser had publicly backed Elliott’s bid to appoint the trio of board directors to shake-up the investment trust.
The compromise with Elliott heads off the rising threat of an embarrassing defeat at the AGM.
Anthony Brooke and Rory Macnamara are set to be named to Alliance Trust’s board, subject to regulatory approvals, and Alliance Trust has stepped up its own search for a new non-executive director, which will be done “in consultation with the Company’s major shareholders”.
In return, Elliott Advisors has agreed to withdraw its proposed resolutions from tomorrow’s AGM and agreed to back Alliance Trust in all proposed motions.
It has also pledged to “not call a general meeting or seek to agitate against the company, its board or management publicly until after the company’s 2016 AGM at the earliest”.
Karin Forseke, chair of Alliance Trust, said: “On behalf of the whole board, I would like to express my gratitude to our 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.”
In a statement, Elliott said: “We are pleased to have reached an understanding with Alliance Trust and look forward to following the enlarged board’s progress on strategic and business matters over the next year and beyond.”
Elliott also thanked Peter Chambers, the third nominee for non-executive director, “for gracefully agreeing to stand aside as a candidate”.
