ACTIVIST investor Laxey Partners has demanded Alliance Trust use capital gains to triple its dividend payout, prompting the Dundee investment giant to retort that the rebel's proposal "makes Greek finances look prudent".
Isle of Man-based Laxey said Alliance could pay larger dividends when new tax rules come into force in April allowing some investment trusts to pay realised capital gains as dividends.
In a letter to outgoing chairwoman Lesley Knox, the hedge fund said if Alliance Trust distributed all 2011 earnings and realised capital gains "shareholders could receive a dividend of as much as 28p per share".
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