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Alliance Trust Announcement and ATSAG Response

Alliance Trust Plc have today announced a number of changes "to enhance shareholder value" as they put it. It includes a more focussed investment mandate, a reduction in costs, a commitment to narrowing the discount, a revised dividend policy and a simplification of the corporate structure. The Alliance Trust Shareholder Action Group (ATSAG), supported by ShareSoc, has generally welcomed the changes. You can read the full comments issued by ATSAG in this press release: https://www.sharesoc.org/pr70alliancenews.html Roger Lawson

Quindell law suit, and Camkids

Many private investors lost money on their investments in Quindell. It was one of the most highly traded stocks on the market. Now a legal action has been launched by law firm "Your Legal Friend" on the basis of misleading statements being issued by the company during 2013 and 2014. To quote from the lawyers web site, where you can register your interest (see https://www.yourlegalfriend.com/types-of-claim/public-incidents/quindell-investment-claims ): "We have been contacted by many such investors who relied on a range of positive statements issued ...

Glencore Placing Attacked

In a previous blog post I said that Glencore's plans to cut its debt and strengthen its balance sheet by disposals and a new share issue were "just what the doctor ordered". But it turns out that the detail of the prescription was not to everyone's liking. Institutional fund managers have rightly deplored the fact that the equity issue was a "placing", i.e. not a rights issue that is subject to the normal pre-emption rules. In other words, existing shareholders were ...

Elliott Raises Stake in Alliance Trust

Elliott Advisors have raised their stake in Alliance Trust to 14%. After a battle before the last Annual General Meeting of Alliance, the company effectively conceded defeat by appointing two new non-executive directors as suggested by Elliott. But the issues raised by Elliott of a high share price discount to net asset value, and long-standing poor performance have not gone away – the discount currently stands at about 12%, much higher than most generalist investment trusts. Indeed many trusts are now ...

Corbynomics, Director Remuneration and Voting

The media is full of analyses of late of the impact of the new Labour front bench and the policies of the key players such as Shadow Chancellor John McDonnell and Business Secretary Angela Eagle. Mr McDonnell apparently advocates big increases in public spending, higher taxes on the wealthy, cancellation of the independence of the Bank of England and widespread nationalisations of energy companies and the railways. The Financial Times ran an editorial on 16/9/2015 suggesting that Mr McDonell's "cavalier disregard of ...