LONDON (Reuters) - Alliance Trust (L:ATST) has criticised investor interest group ShareSoc for throwing its weight behind a boardroom overhaul proposed by activist group Elliott Investors before smaller shareholders have seen details of its defence.
Alliance, which runs one of the country's biggest investment trusts, is at the centre of a tussle with leading shareholder Elliott, a U.S. fund agitating for a change at boardroom level to help improve the value of the firm.
"Alliance Trust is surprised that Share Soc has decided to issue a statement before the Board has published its Circular to all shareholders," the embattled British investment company said in an emailed statement.
"The board reiterates its concern that Elliott's proposal of adding three Non-Executive Directors to the Alliance Trust Board is an attempt to pursue its own agenda and maintains its belief that these directors cannot be judged to be independent."
ShareSoc, which represents individual investors who invest in the UK stock markets, called on the Trust's shareholders to vote in favour of the proposed directors unless the Trust put forward stronger arguments to the contrary, in a statement published earlier on Tuesday.
"Requisitioning resolutions is simple democracy upon which shareholders can make their own minds up and the initial and rapid response from Alliance has been less than temperate," ShareSoc Deputy Chairman Roger Lawson said.
Alliance Trust has recommended that shareholders vote against Elliott's resolutions.