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Inter-Alliance has reassured its shareholders and staff that none of its institutional shareholders has sold their shares in the firm.In an internal memo seen by Money Marketing, chairman and chief executive Keith Carby has told staff that none of the firm's institutional investors had pulled out.Carby said: "Contrary to just one of many false rumours I have heard, none of our strategic partners (Norwich Union, Friends Provident, Scottish Widows and Skandia) has sold a single share in Inter-Alliance."At June 13, Evolution Group held a 14.1 per cent stake, Friends had a 9.9 per cent stake, Widows had 9.2 per cent and NU had 5.6 per cent.Gartmore and Skandia also have nominal accounts with the group and hold less than 3 per cent.Following a drop of more than 70 per cent from 32p, Inter-Alliance's share price has stabilised at around 6.5p. The group concedes that it will not make a quick recovery,Carby said: "Not surprisingly, other people have sold so the share price remains exceptionally low and the received wisdom is that it won't recover in the short term."Carby's statement comes after a report by Durlacher analyst David Pannell which paints a bleak future for Inter-Alliance following the fall in its share pricePannell said: "The future for IA looks bleak. We believe that the better than best rule, restricting provider investments to below 10 per cent of a distributor, means that IA cannot be rescued by providers. In any case, provider sentiment is likely to be negative."Numis analyst Justin Bates says: "The big issue that IA will face while they are in a state of flux is that it is easy for morale to slip. Advisers are already downbeat and selling products has become increasingly difficult. It may be that the position has stabilised but if any enticing offers come their way, IA cannot guarantee that their best advisers will stay."Copyright: Centaur Communications Ltd. and licensors