Nicola Horlick is not expected to give up her fight for the Bramdean Alternative fund after bid talks between her and the investment company she manages collapsed.
In a statement issued on the London Stock Exchange at 5pm last night, the board said it had terminated talks between Petersfield Asset Management, the vehicle Horlick (pictured) made the bid through.
However, Petersfield has indicated that is does not intend to withdraw its approach and therefore the company remains in an offer period under the Takeover Code.
The board said that following its discussions with shareholders owning 94% of the shares it will actively seek to implement a corporate reconstruction which would provide shareholders with a choice of realising their holding and/or continuing their investment.
It said: 'The board believes that such a reconstruction is in the best interests of all shareholders. The detail of this reconstruction will be announced as soon as practicable after the EGM on 18 June and further consultation with shareholders.'
Horlick's bid, which is yet to be priced, had been widely interpreted as a proxy dispute over strategy between Horlick and Vincent Tchenguiz, the largest single shareholder in the trust with 28% of shares.
Following the initial notification of the bid, Tchenguiz called an extraordinary general meeting in order to oust the board and propose new directors.
Horlick is not thought to be a significant shareholder in Bramdean Alternative but her asset management company owns the contract to manage the hedge fund and private equity portfolios.