LONDON (ShareCast) - (Sharecast News) - Edinburgh Worldwide Investment Trust hit out at Saba Capital on Thursday after the activist investor once again requested a general meeting as it looks to oust the company's board.
EWI recommended that shareholders take no action with respect to the requestion notice, which was received on Wednesday. Investors should await a further announcement that will be made in due course, it said.

Saba - EWI's biggest shareholder with a 29% stake - wants shareholders to vote to remove the trust's six independent non-executive directors and appoint Gabi Gliksberg, Jassen Trenkow and Michael Joseph as directors.

EWI chair Jonathan Simpson-Dent said: "Saba has for a second time launched a power grab calling for the entire board to be replaced with US candidates of their own choosing. Their goal is clear - to gain control of the company to prioritise their own commercial interests.

"Saba's letter does not acknowledge the significant progress EWIT has achieved since this board reset the company on a path for growth a year ago. Since then, NAV total return has been +13.1%, well ahead of the S&P Global Small Cap Index (+5.0%), the company's benchmark index.

"Furthermore, the company's proactive steps over the last year have supported a tightly managed discount, currently 5.4%, significantly narrower than the Global Smaller Companies peer group weighted average discount of 11.0%.

"Shareholders should not be fooled by this US hedge fund's claims. This board remains fully committed to serving the best interests of all shareholders. Saba's proposal would result in a board answerable to only one."

Earlier this week, Baillie Gifford US Growth Trust said that Saba Capital had blocked a proposed merger with EWI.

The trust said it has been in active discussions about "a transformational merger opportunity that would result in both a continuation and refinement of the current investment strategy as well as a material cash exit opportunity for all shareholders".

However, at a meeting on Monday to sound out support for a deal, Saba said it would not support such a move.

Baillie Gifford said that while Saba is able to block the requisite shareholder approvals due to the size of its holding, it would nonetheless like to consult with shareholders more broadly on their views.

"The directors firmly believe that the merger would be in the interests of all shareholders, including Saba," it said.

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