LONDON—Scottish investment company Alliance Trust PLC said it has received an informal merger approach from Jacob Rothschild's RIT Capital Partners PLC, but no detailed proposal has been provided.

A merger of the companies would create an investment firm worth around £ 5.14 billion ($7.36 billion), based on their closing share prices Friday.

Dundee-based Alliance Trust said it recently appointed Canaccord Genuity to advise it on a strategic review of the business, and would consider any formal merger proposal from RIT, alongside other options.

However, Alliance Trust cautioned there can be no certainty that any transaction would result from the board's strategic review and advised shareholders to await the outcome and take no action in the interim.

RIT has until 1600 GMT on June 27 to either make an offer, or withdraw.

Separately, RIT confirmed it was considering a combination of the two companies, but said the issue was at a preliminary stage. "Further analysis and discussion will determine whether such an outcome is indeed in the best interests of shareholders and can be achieved," it said.

Alliance Trust shares closed Friday at 508.5 pence, valuing the company at around £ 2.62 billion pounds ($3.84 billion).

RIT Capital Partners is an investment trust chaired by Lord Rothschild and has been listed on the London Stock Exchange since 1988.

Corrections & Amplifications

A merger of the companies would create an investment firm worth around £ 5.14 billion pounds ($7.36 billion), based on their closing share prices Friday. An earlier version of this article incorrectly said the merger would create a firm worth around €5.14 billion.

(END) Dow Jones Newswires

May 31, 2016 05:15 ET (09:15 GMT)

Copyright (c) 2016 Dow Jones & Company, Inc.
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