Alliance Trust today confirmed it had spent £3 million in its fight with rebel investor Elliott Advisors.
The Dundee-headquartered firm said part of the seven-figure sum which represents around 15% of its total cost base for 2014 had been paid out on securing external professional advice in relation to the battle.
Just 24 hours ahead of today’s AGM, Alliance Trust changed tack and agreed a deal with Elliott that will see two of the hedge fund’s nominees as new independent non-executive directors elected to the board.
Chairman Karin Forseke told around 400 investors gathered at the general meeting at the Gardyne Theatre that the cost was one the business would rather not have borne.
But she said the decision to agree a last-minute compromise deal had come after reflecting on feedback from shareholders following an extensive consultation exercise in the weeks since Elliott raised its requisition of the board last month.
In answer to a question from the floor in which a shareholder likened the elevation of Elliott’s two nominees as akin to allowing “foxes to look after the hen house”, Ms Forseke said the important thing was the trust had a diversified board.
Asked whether there was a chance of the trust moving to London, Ms Forseke said the firm was “dedicated” to maintaining its Dundee headquarters and had no plans to expand elsewhere.
Elliott Advisors were represented at the meeting but made no comment.
For more coverage of the AGM, see Thursday’s Courier or try our digital edition.