BLOG: Win-win for Laxey as Alliance battle reaches climax

This Friday the 123rd annual general meeting of Alliance trust will not be the serene affair the company's board is used to, as Laxey Partners' long-running call to integrate a discount control mechanism reaches its climax.

The activist investor has argued the case for a DCM since last November to rein in the £2.8bn trust's discount from 17% to a maximum of 10%. Laxey's outspoken chief executive, Colin Kingsnorth, said shareholders would benefit if Alliance acted, while Alliance itself, which was tight-lipped over the affair until last month, argued long-term investors would suffer if a DCM is introduced, with only those looking to make a quick buck really benefitting. However, whatever side of the argument shareholders take when they vote on Friday, one thing is for sure - Laxey Partners has already won...