The First Minister has pledged her support to the management of Alliance Trust as the company looks to fend off a challenge from rebel shareholder Elliott Advisors.
The Courier understands that Nicola Sturgeon gave her backing to the Trust in response to a letter from chief executive Katherine Garrett-Cox.
The move comes just days ahead of the Trust’s scheduled showdown with Elliott at its annual general meeting in Dundee on Wednesday.
The correspondence has not been released, and the First Minister has not publicly commented on Elliott’s attempt to force boardroom change.
The group, which is the Trust’s largest single shareholder with a 12% stake, is trying to corral support for the election of three new independent non-executive directors to the board.
Elliott says its concerns relate to standards of corporate governance at the Trust, an inflated costs base and under-performance of its investment portfolio.
It has denied suggestions that it has requested a partial liquidation of 40% of the Trust in order to drive the value of its holding and allow it to exit.
Dundee-based Alliance believes such a move would be detrimental to the Trust and the interests of long-term shareholders that make up a significant proportion of its investor base.
SNP deputy party leader Stewart Hosie yesterday said it was a “critical time” for the Trust, and welcomed supportive comments from business leaders including Sir Angus Grossart.
“Alliance Trust is one of Dundee’s and Scotland’s greatest successes,” Mr Hosie said.
“It is very important to me that the city’s bright future, of which Alliance Trust has a key role to play, is protected over the long term.
“Alliance Trust employs around 250 skilled people in Scotland and serves customers across the UK from its Dundee base.
“The emotional heritage that is invested in the city and Scotland more broadly must be protected.
“While I recognise the importance of active and healthy investor challenge, I do not believe that Elliott Advisers’ goals are aligned to the long-term interests of the City of Dundee or Scotland more broadly.
“Therefore I encourage Alliance Trust shareholders to consider their votes very seriously ahead of next week’s AGM.”