By Ed Ballard
LONDON--Alliance Trust PLC (ATST.LN) Tuesday said it will
appoint two of three directors proposed by U.S. hedge fund Elliot
Management Corp., averting a scheduled shareholder vote at the last
minute after months of pressure from the activist investor.
Alliance Trust said it agreed to appoint Anthony Brooke and Rory
Macnamara to the board after consulting other shareholders.
The U.K. investment trust has been battling Elliot, its largest
shareholder, since last last year. Elliott has criticized the
company's performance and corporate governance; Alliance Trust
accused Elliot of "misleading" investors.
Shareholders were due to vote on the appointment of three
directors put forward by Elliott at Alliance Trust's annual general
meeting on April 29.
The two companies have agreed to "mutual non-disparagement
undertakings," while Elliott won't "agitate against the company" at
any time in the next year, Alliance Trust said.
"We are pleased to have reached an understanding with Alliance
Trust and look forward to following the enlarged Board's progress
on strategic and business matters over the next year and beyond,"
Elliott said.
Write to Ed Ballard at ed.ballard@wsj.com