A Swiss listed private equity fund embroiled in a rare public battle with disgruntled shareholders has said it will not support their demands for an overhaul of the company because doing so would result in effective liquidation.

The PE Holding board said in a statement last night that it recommended rejecting the proposals put forward this month by French investment group Mantra Investissement and Franco-American investor Guy Wyser-Pratte, who are some of the first shareholders to attempt to force a fund to change strategy in the crisis-ridden listed private equity sector.