Trust targeted by Saba warns the US hedge fund poses an 'existential threat'
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An investment trust targeted by Saba Capital has warned it faces an ‘existential threat’ if the US corporate raider triumphs in a vote next month. The Edinburgh Worldwide Investment Trust (EWIT) urged shareholders to oppose Saba’s plans to oust its board and replace them with its own nominees at a meeting scheduled for February 14.
Saba, run by Wall Street financier Boaz Weinstein, owns around 21 per cent of the trust and will win if at least 50 per cent of voting shareholders support the proposals. This means it can succeed if a large number of investors do not show up to vote against the plans.
EWIT’s chairman Jonathan Simpson-Dent accused Saba of an ‘overt land grab’ and trying to ‘exploit’ the fact that the trust’s large number of retail shareholders do not normally vote. Retail investors hold around 50 per cent of the trust’s shares, meaning they have enough power to vote down the US firm’s proposals.
Saba, run by Wall Street financier Boaz Weinstein, owns around 21% of the The Edinburgh Worldwide Investment Trust, and wants to oust the board. ‘I am deeply troubled by Saba’s proposals. Investment trusts are extremely democratic by construction – Saba’s proposals are not,’ Simpson-Dent said.
‘[Shareholders] have chosen Edinburgh Worldwide for its unique and early access to hidden gems, ground-breaking businesses which in many cases are not available on the public markets. Let’s not let Saba take that away.’. Announcing the date of its vote on Saba’s plans, EWIT claimed the US firm had ‘no apparent track record’ of investing in specialist small companies, the main focus of the trust.
