Funds management: Trikona Advisers nnnounces plans to sue Trikona Trinity Capital

TAL yesterday issued the following statement:

A spokesman for TAL today said "For over two years now TRC has been under attack from two hedge funds. They took a position in the Fund because of the successful performance and returns created under the management of TAL, but are now seeking an exit. These hedge funds have a track record of activism and for closing down Funds early in the cycle to realise cash for short term gains, and this is what it is happening to TRC. Other recent examples of their activism involve Treveria plc (AIM:TRV) the German retail focused real estate investment company, which had been under pressure to remove four directors including the Chairman. These funds have also targeted others such as South African Property Opportunities (AIM:SAPO) and Hirco plc, (AIM:HRCO).

Our management contract stands in the way of their strategy, because it lasts for ten years, so we are being unfairly treated publicly and falling victim to their strategy. This has included TRC making public announcements about alleged breaches under the contract, all of which are denied. We sent a long, detailed letter to TRC explaining this, and setting out our claims. TAL will invoke its contractual rights in the strongest terms. TAL will also look beyond TRC if necessary to recover all of its losses. In the next two weeks, TAL will commence the process of seeking and obtaining relevant orders from the London Court of International Arbitration for all due remuneration under our management contract, which totals approximately GBP112,000,000. "

TAL has instructed a number of law firms to invoke its contractual rights, including London law firm SJ Berwin LLP to pursue TRC through the London Court of International Arbitration.

Under the Portfolio Management Agreement with TRC, TAL is engaged to carry out management services to TRC for a period of ten years from 16 April 2006. The claim comprises management fees and estimated Profit Share payments due to TAL for the remainder of the term and for opportunities and projects already introduced and managed by TAL on behalf by the Fund.