Elliott throws out Alliance defence document as row escalates

LONDON, March 31 (Reuters) - Elliott Advisors, theshareholder seeking a boardroom shake-up at Alliance Trust, threw out the trust's defence of its performance,costs, and dividend policy on Tuesday, and reiterated calls forthe election of three new directors.

The New York-based hedge fund published a "forensic study"of the investment company's shareholder circular, which it saidfailed "to engage on matters of substance and resorts topersonal attacks in a manner unbecoming of directors of a publiccompany."

"Recent public comments by a former director of the Companyabout the lack of open debate in the board room has strengthenedour view that added independence and a fresh perspective isneeded to improve Alliance Trust," Elliott said in a statement.

Using third party data, Elliott pointed out that over allrelevant return periods Alliance Trust has underperformed itssector peers and relevant benchmarks.

It also said its "ongoing charges ratio" of 0.6 percent was"distorted" and was 1 percent on average over the past fiveyears.

The investor has proposed the election of Anthony Brooke,Peter Chambers and Rory Macnamara as new independentnon-executive directors at the Annual General Meeting on April29. (Reporting By Sinead Cruise, editing by Anjuli Davies)