By Jemima Kelly
LONDON Feb 27 U.S. activist investor Elliott
Management Corp has increased its exposure to Scotland-based
investment firm Alliance Trust Plc to more than 10
percent, a stock market filing showed.
The filing on Wednesday showed the hedge fund had increased
its direct ownership of shares in Alliance Trust to just over 5
percent from just under 5 percent. It also holds contracts for
difference, or CFDs - a type of derivative - in Alliance Trust
amounting to just over 5 percent.
Elliott has also bought into another UK asset manager F&C
Asset Management via derivatives contracts, giving it
the equivalent of about an 11 percent stake.
The hedge fund recently took a big stake in Morrisons
and is pushing the British supermarket chain to sell off
some of its property assets. Elliott was also
active in U.S. drugs company McKesson's takeover of
Elliott will only have voting rights of just over 5 percent
in Alliance Trust unless the firm has instructed the owner of
the CFDs to vote on its behalf, a source familiar with the
matter told Reuters.
Alliance Trust is engaged in constructive conversations with
Elliott, as it is with all its shareholders, the source said.
Katherine Garrett-Cox, chief executive of Alliance Trust,
was not available for comment because the company is in a closed
period ahead of publishing its annual results next Friday.
New-York based Elliott was not immediately available for