Jacob Rothschild investment trust says no to alliance with rival
RIT Capital has withdrawn its interest in making an offer for Alliance Trust.
The investment trust, which is chaired by Jacob Rothschild, confirmed last week that it was considering a move.
But RIT said on Tuesday morning: “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.”
Read more: Alliance Trust confirms merger approach from Jacob Rothschild's RIT Capital
The statement added: “The board of RIT respects the process which Alliance Trust are going through and wishes them well with their strategic review.”
Alliance Trust shares, which opened at 513p on Monday, fell by around one per cent after the announcement, while RIT Capital’s went in the opposite direction.
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Read more: Alliance Trust appoints new chairman
It has been an eventful period for Alliance Trust. In April last year, the company gave shareholder Elliott Advisors the power to appoint two of three independent directors after months of campaigning by the US investor.
And in February this year, Alliance confirmed the departure of chief executive Katherine Garrett-Cox. She had already stepped down from the board following the company’s battle with Elliott Advisors.