LONDON (Alliance News) - RIT Capital Partners PLC on Tuesday said more "analysis and discussion" is required to determine whether a combination with Alliance Trust PLC is in the best interests of shareholders.
The Financial Times had reported over the weekend that RIT, the FTSE 250 investment trust chaired by Jacob Rothschild, had approached Alliance Trust about a tie-up. A deal would create a company with a value by market capitalisation of more than GBP5.0 billion.
"The possibility of combining the two companies for the benefit of both sets of shareholders is at a very preliminary stage of consideration," RIT said in a statement.
Under takeover rules, RIT must announce a firm intention to make an offer for Alliance Trust by 1700 BST on June 27 or walk away.
In a separate statement, Alliance Trust confirmed that RIT had approached it with an "informal proposal" for a merger.
Alliance Trust said it will incorporate any formal proposal received from RIT into its strategic review.
Other options are being considered in Alliance Trust's review, which is being carried out by Canaccord Genuity, alongside other advisers.
"The company wishes to thoroughly explore all options available to it for the long-term future benefit of shareholders and therefore expects that the strategic review outcome may not be determined for some months," Alliance Trust said.
Alliance Trust last week made good on a promise to tackle the absence of women on its board in the wake of the departure of former chief executive Katherine Garrett-Cox and ex-chair Karin Forseke after losing a battle against activist shareholder Elliott Advisors.
The company named on Thursday last week Clare Dobie as an independent non-executive director with immediate effect, making her the only woman on the board.
Dobie also sits on the boards of Aberdeen New Thai Investment Trust PLC, F&C Capital & Income Investment Trust PLC and Schroder UK Mid Cap Fund PLC.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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