Alliance Trust calls in FSA over share scam

Alliance Trust has alerted the Financial Services Authority (FSA) after a number of its shareholders received bogus telephone calls offering to buy shares at double their market value.

The group said a number of investors who hold shares in their own name, rather than through a nominee account, have received telephone calls from an organisation claiming to be looking to acquire shares in Alliance Trust.

The fake calls ask investors to confirm their interest by making payments to the fraudsters, or by sending over copies of their share certificates.

Alliance Trust said in a statement: "We have alerted the FSA to the issue. Calls offering payment well in excess of the price of our shares on the London stock market are almost invariably scams designed to extract cash or details of your investments that they would use to your detriment.

"We do not recommend that you comply with this type of request. We advise that prior to buying or selling shares you should contact your stockbroker or financial adviser."

Last year the trust was embroiled in a bitter public spat with activist investor Laxey Partners, which called for Alliance Trust to introduce a discount control mechanism.

The trust is trading on a 14.5% discount today, according to broker Winterflood, while its shares are priced at 349p each.