Prominent pension expert and former UK government minister, Baroness Ros Altmann, is urging investors to reject Saba Capital Management’s hostile takeover bid for the Edinburgh Worldwide Investment Trust. With the vote looming, Altmann cautions that ordinary shareholders must act quickly to protect their interests.
Altmann, a respected voice in the financial industry, has expressed grave concerns over Saba’s move, which she believes poses a significant threat to the investment trust sector as a whole. “The investment trust industry is under attack, and ordinary shareholders should be very wary,” she warned. “Time is running out for them to have their say.”
Saba, a New York-based hedge fund, has built a substantial stake in Edinburgh Worldwide, a London-listed trust that focuses on investing in fast-growing global companies. The fund is now seeking to take control of the trust’s board, a move that has drawn fierce opposition from Altmann and other industry experts.
“Saba’s actions are a clear attempt at a hostile takeover,” Altmann said. “They are trying to seize control of the trust for their own benefit, without regard for the interests of the ordinary shareholders who have entrusted their money to Edinburgh Worldwide.”
Altmann’s concerns echo those of the Edinburgh Worldwide board, which has unanimously rejected Saba’s proposals. In a statement, the board described Saba’s actions as “opportunistic” and warned that the hedge fund’s plans could “significantly damage” the trust’s long-term performance and prospects.
The battle for Edinburgh Worldwide has broader implications for the investment trust sector, which has seen a surge of interest from activist investors in recent years. Altmann believes that if Saba’s bid is successful, it could embolden other hedge funds to target other trusts, potentially undermining the stability and independence of the industry.
“Shareholders need to stand up and be counted,” Altmann said. “They must vote against Saba’s proposals and send a clear message that hostile takeovers will not be tolerated. The future of the investment trust sector may well depend on the outcome of this vote.”
With the vote scheduled for the coming weeks, time is of the essence for Edinburgh Worldwide’s shareholders. Altmann is urging them to carefully consider the implications of Saba’s actions and to make their voices heard in defense of the trust and the broader investment trust industry.
