New Alliance boss hits out at rebel investor

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The Independent Online

Just a couple of days into the job and the new chairman of Alliance Trust has come out fighting to back the in-house investment team headed by Katherine Garrett-Cox from potential raiders.

Karin Forseke hit out at Laxey Partners, accusing it of wasting other shareholders' money and acting in "its own, short-term self-interest".

She said Alliance had already spent £2.5m defending itself against the activist investor.

"We want to defend the interests of all shareholders," Ms Forseke said.

Laxey has called on Alliance to review its business, look at appointing outside fund managers and put in place a method for holders to sell shares at a price closer to asset value.

Its resolutions will be put to shareholders during Alliance's annual meeting at the end of this month.

Laxey has a 1.7 per cent holding in Alliance.

The new Alliance boss defended Ms Garrett-Cox, saying: "Over the last three or four years she and her team have done a superb job turning the investment performance around.

"The share price discount to net asset value has narrowed somewhat and last month we announced the 45th consecutive rise in dividend," Ms Forseke added.