DUNDEE-based Alliance Trust has reached a last-minute compromise in its battle with shareholder Elliott Advisors.
The investment trust has agreed to appoint two of three new non-executive directors proposed by Elliott to its board, the day before the Alliance's annual meeting in Dundee. The agreement to appoint Anthony Brooke and Rory Macnamara follows a protracted war of words between the two sides over the boardroom shake-up proposed by Elliott.
The compromise appears to have been reached following feedback to Alliance from its shareholder base.
The Elliott proposals were the subject of resolutions to be put to the Alliance meeting.
Karin Forseke, chair of Alliance, 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.
"I would also like to welcome Anthony and Rory to the Board where their significant experience will be a considerable asset."
The trust said: "The board of Alliance Trust announces that, following discussions, Elliott Advisors (UK) Ltd, its largest shareholder, has agreed to withdraw its three resolutions from the Alliance Trust annual general meeting on 29 April 2015 and has committed to support the board and management on all other resolutions.
"The board and Elliott have also agreed on certain mutual non-disparagement undertakings and that Elliott will 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."
The trust said the board had agreed to appoint Mr Brooke and Mr Macnamara to the board of the company once customary regulatory approvals have been obtained and that they would act as board observers in the interim period.
It added: "In addition, as previously announced on 14 April 2015, the board has accelerated the process to appoint an additional independent non-executive director, which will be done in consultation with the company's major shareholders."
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