Alliance Trust and RIT call off £5bn merger talks

Discussion in 'Market News' started by Lily, Jun 7, 2016.

  1. Lily

    Lily Forum Member

    Aug 29, 2015
    Likes Received:
    RIT says it would not be in best interests of shareholders to make an offer

    A week after Alliance Trust announced it had received an informal approach from RIT Capital Partners about a possible £5bn merger, the deal is off.

    RIT, chaired by British financier Jacob Rothschild, said it would not be in the best interests of its shareholders to make an offer for its fellow investment firm after all.

    The announcement that RIT Capital and Alliance Trust are no longer in talks must be one of the shortest trust romances in recent memory. After a few messages and a date that got publicised and well discussed in the press, they’ve decided to just be friends. Investors in RIT Capital are left untroubled, whilst Alliance Trust needs a solution to allow Elliott Advisors to sell their 16% stake.

    Whilst we do not wish to pre-judge the outcome of [Alliance’s strategic] review, and accept the final outcome may be less radical than we would wish, we are at least comforted that there is a better and more open dialogue between the board and other interested parties, including shareholders, today than in the recent past.

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