Shareholders in an Edinburgh trust will vote today on demands by a New York based activist to oust the board.
Saba Capital Management, led by Boaz Weinstein, wants to remove the directors of Edinburgh Worldwide Investment Trust (EWIT) and install its own nominees.
Two shareholder advisory groups, Glass Lewis and Institutional Shareholder Services, have called for the hedge fund’s proposals to be rejected. Pensions group Legal & General and the former pensions minster Baroness Altmann have also said it would be voting against all of Saba’s resolutions.
Saba owns slightly more than 30% of the Baillie Gifford managed trust and the vote could be closer than the overwhelming rejection of similar proposals last February.
Mr Weinstein claims the £784m trust has underperformed. However, since that last vote the share price has risen.
The move has forced other trusts to bolster their defences. Some are hiring PR firms with experience in handling hostile approaches.
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