Laxey Partners

[stewarty 1,878]

Whilst we hope their intentions are good, I point everyone again to their actions in relation to Alliance Trust. A quick google search shows how much of an impact they can have with a minority shareholding if they don't like the way things are being managed.

 

Colour me anxious about their involvement.

[Frankie 8,185]

Whilst we hope their intentions are good, I point everyone again to their actions in relation to Alliance Trust. A quick google search shows how much of an impact they can have with a minority shareholding if they don't like the way things are being managed.

 

Colour me anxious about their involvement.

 

Can you outline that issue in laymen's terms for us mate...?

 

Feel free to flesh it out into an article if possible.

[stewarty 1,878]

Can you outline that issue in laymen's terms for us mate...?

 

Feel free to flesh it out into an article if possible.

 

I don't profess to be an expert. This is perhaps why I'm a bit wary of them. But they are known as 'rebel investors', and the following is taken from a Telegraph article in 2011:

 

The hedge fund has written to fellow shareholders and the board laying out

its case for Alliance to ditch what it labels "poison pill" strategies.

 

 

 

 

Laxey argues that Alliance, which is the UK's largest listed investment

trust, should take actions to boost the value of its shares.

 

 

 

The hedge fund wants Alliance to buy back shares if their discount to net

asset value (NAV) – the gap between what a share sells for and the slice of

assets is represents – exceeds 10pc.

 

 

 

Laxey's argument is that having a mechanism that automatically kicks in gives

shareholders more "certainty" if they want to sell their shares.

 

 

 

Alliance's shares have recently been trading at a discount of 16pc to NAV.

 

 

 

A buyback would reduce the number of their shares available and so, it is

hoped, shrink the discount.

 

Laxey also wants to change the company's shareholder voting method, because

it claims the current system might give Alliance's management unfair weighting.

 

 

The dispute has already seen Laxey create 100 different subsidiary companies

so that it would meet criteria to get the two proposals onto the agenda of

Alliance's AGM in May, setting the scene for a showdown.

 

Colin Kingsnorth, Laxey's co-founder, said: "A number of big shareholders

have asked them to do this before. This is the first time that someone has

insisted a vote takes place."

 

Laxey is meeting representatives from Alliance next week to discuss the

issues, he added. As of the end of December, funds managed by Laxey - which is

based in the Isle of Man - held around 1.5pc of Alliance's shares, worth some

£35m.

 

Alliance declined to comment. However, the company is expected to strongly

dispute Laxey's arguments when it does present its own case to shareholders.

 

 

The investment trust does not believe that having to automatically buy back

shares – which would reduce the funds under management and tie its hands

somewhat - is geared towards the interests of long-term shareholders.

 

Alliance has previously said it would undertake share buybacks where the

"board judged it to be in the interests of all shareholders to do so" but that

it did not support a discount control mechanism.

 

Instead, the focus should be on investment performance, the company argued in

its 2010 annual report.

 

Laxey's move comes a week after activist investor Edward Bramson ousted the

chairman of F&C Asset Management in a rare boardroom coup.

 

[stewarty 1,878]

Regardless of whether or not they have legitimite concerns about this discounted share business, their shareholding was around 1.7% around 2011, at that time this issue had been going for a year or two, and is still going on today as far as I can see.

[Frankie 8,185]

Regardless of whether or not they have legitimite concerns about this discounted share business, their shareholding was around 1.7% around 2011, at that time this issue had been going for a year or two, and is still going on today as far as I can see.

 

So they could be at Rangers for some considerable time?

 

Or do they see value in a short-term turnaround of price due to influencing the EGM for example?

[stewarty 1,878]

The bit about them setting up 100 different companies in order to get a particular resolution onto the company's AGM agenda is the bit puts the icing on the cake.

 

Basically, if we McColl et al get their own way and gain overall control of things, and we seem to then move into a period of stability, if Laxey don't like it they'll go to any length to get their voice heard, no matter the significance of their shareholding.

 

More boardroom turmoil is ahead, methinks

[stewarty 1,878]

So they could be at Rangers for some considerable time?

 

Or do they see value in a short-term turnaround of price due to influencing the EGM for example?

 

Hard to tell. Seems to me they are in it for the long haul, but my guess is that it will be on their terms, rather than that of the club or fans.

[forlanssister 3,059]

In short re Alliance Trust:

 

They came, they saw. they made some noise, they didn't get their own way then they departed the scene.

 

However Alliance Trust certainly took them seriously and in truth they probably gave the Alliance Trust a kick up the arse it needed, ironically Laxey didn't hang around to enjoy the benefits of their labours.

[der Berliner 3,290]

The way I see it, they are buying up shares from previous shareholders / original investors, unless there are unclaimed shares out there. It looks )sic!) like those selling their shares now are primarily from Green's camp, so anyone buying shares and not openly supporting Green, puts a dent into the Green faction's "claim to power".

As has been said, it looks that Laxey look after their own stuff first, so who knows which way they will act. That all said, we'll see what happens tomorrow first.

[chilledbear 16]

Laxey Partners Limited, which purchased a further one million shares in Rangers International Football Club plc last Thursday, confirmed it would back the stance taken by supporters' groups at a proposed general meeting.

 

The Isle of Man-registered hedge fund now has a 6.53% stake in the company after purchasing the shares for around £410,000.

 

On Monday, Laxey Partners stated that it would vote in line with Rangers Supporters Association, Assembly and Trust in calling for the removal of directors.