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

Two very different mandates

Jayna Rana
clock • 4 min read

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...

To continue reading this article...

Join Investment Week for free

  • Unlimited access to real-time news, analysis and opinion from the investment industry, including the Sustainable Hub covering fund news from the ESG space
  • Get ahead of regulatory and technological changes affecting fund management
  • Important and breaking news stories selected by the editors delivered straight to your inbox each day
  • Weekly members-only newsletter with exclusive opinion pieces from leading industry experts
  • Be the first to hear about our extensive events schedule and awards programmes

Join now

 

Already an Investment Week
member?

Login

More on Investment Trusts

Trustpilot