Bosses ousted in Evolution coup

THE founding directors of Inter-Alliance Group, Britain's biggest independent financial adviser, have been ousted in a boardroom coup in which Alternative Investment Market-listed financier Evolution Group will snatch control.

Evolution has acquired a 14% stake in Inter-Alliance, buying most of the shares held by chief executive Stuart McGreevy, managing director David Garofalo and chairman Vincent Isaacs. It paid only £1.6m, or 24p a share, for the interest - less than half Inter-Alliance's current price of 53 1/2p.

McGreevy and Garofalo will leave the company with compensation of £125,000 each, representing one year's salary. Isaacs will remain on the board but be replaced as chairman by fellow director Keith Carby, who will also be chief executive.

Evolution will make a £4m convertible loan to Inter-Alliance which could see it lift its stake to as much as 29.9% by the middle of next year. However, this would be diluted significantly by a share placing being planned by Inter-Alliance, thought to be of around £15m.

Inter-Alliance, which boasts a 1,000-strong salesforce and 160,000 clients, is also awaiting a High Court judgment on its £35m case against US insurer Lincoln.