Investment trust commentators have welcomed the news Alliance Trust has agreed to buy out Elliott Advisors' near 20% stake in the £3.5bn vehicle at a 4.75% discount to NAV, saying it will "end a turbulent chapter" in the fund's history.
The activist investor has been a shareholder in the trust since 2010, steadily building up its holding to become Alliance Trust's largest shareholder. Elliott used its position to fight for a major shake-up of the global trust, including a raft of changes at board level. The board of the trust also announced last year it would be switching to a multi-manager structure, with eight managers appointed to run a focused best ideas portfolio. Meanwhile, the introduction of a "more proactive approach to share buybacks" in December has resulted in the repurchase of over 30 million ordina...
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