LONDON (Reuters) - Tilney Bestinvest, an investment advisory firm managing the voting interests of many 'mom and pop' shareholders in Alliance Trust (L:ATST), has said it will back activist Elliott Advisors in its campaign for a revamp of the trust's board.
Elliott, which has criticised the performance and governance of the 127-year-old British investment trust, has called a shareholder vote on the appointment of three new independent directors on April 29.
Alliance has urged investors to vote down Elliott's plans, citing fears that the nominees would not be truly independent. It has also accelerated its own search for a new non-executive director to join the board.
"After due diligence and consideration of the issues raised by both the Board and Elliott Advisors, we have concluded that the three proposed directors are independent and that they will bring additional expertise to the Board of Alliance Trust to the benefit of shareholders," Tilney Bestinvest Managing Director Jason Hollands said in an emailed statement to Reuters.
Elliott has proposed the election of three financial services and investment industry veterans, Anthony Brooke, Peter Chambers and Rory MacNamara.
Alliance Trust is 65-percent owned by private investors. Tilney Bestinvest has a mandate to vote on behalf of investors holding around 1 percent of Alliance shares. Elliott owns a 12 percent stake in the company.