Alliance Trust has revealed it spent £3m on legal and financial advice in its row with Elliott Advisors over governance.
US hedge fund group Elliott Advisors is Alliance Trust’s biggest shareholder and had been battling to appoint three independent non-executive directors to its board.
On Tuesday the two firms reached a truce, with Alliance Trust agreeing to appoint two of Elliott Advisors’ proposed three candidates.
And at Alliance Trust’s annual general meeting in Dundee today, chairman Karin Forseke revealed the row had cost it £3m, the Telegraph reports.
She said the company had wanted the best financial and legal advice to tackle Elliott Advisors’ campaign.
She acknowledged investors’ surprise at the decision to yield to Elliott Advisors’ demands, saying: “We know this is viewed as a U-turn.”
Forseke added: “This year has been a good opportunity for honest and frank feedback from our shareholders.”