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RIT decides against Alliance bid

Lord SmithAn asset manager pursuing Alliance Trust has decided not to table an offer for the Dundee based company.

RIT Capital Partners, part of the Rothschild empire, has formally withdrawn its proposal for a merger and Alliance chairman Lord Smith will now continue leading an ongoing review of the business.

A statement from RIT Capital said: “Following careful analysis and constructive discussions with representatives of Alliance Trust, RIT has concluded that it would not be in the best interests of its shareholders to make an offer for Alliance Trust and accordingly announces that it does not intend to make an offer to acquire Alliance Trust.

“The board of RIT respects the process which Alliance Trust are going through and wishes them well with their strategic review.”

Alliance said in a statement that it will continue with the review of the business. “This process is well under way and has already started to make good progress, lowering costs, narrowing the discount and allowing for the creation of a fully independent board of directors,” it said.

“Notwithstanding the achievements to date, this process of development continues and includes a strategic review of the group, encompassing a broad range of potential courses of action.

“In light of this the board will continue to suspend share buybacks until it has concluded on its strategic review.”

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