Home / Business and Economy / US Raider Blocks Herald Trust Takeover Bid
US Raider Blocks Herald Trust Takeover Bid
4 Feb
Summary
- Herald investment trust's offer to investors was rejected.
- Saba Capital, holding over 30% of shares, vetoed the proposal.
- Discussions are ongoing for a new offer acceptable to Saba.
A recent offer by the embattled Herald investment trust to allow investors to sell shares at asset value has been blocked. The proposal, which offered a 9.5 percent premium over the stock price, was rejected by Saba Capital. This US investment firm, led by New York hedge fund manager Boaz Weinstein, holds more than 30 percent of Herald's shares.
Due to its significant stake, Saba Capital effectively wielded veto power, as the offer required over 75 percent shareholder support. The rejection is seen as an indication that Saba Capital will persist with its long-standing efforts to take control of the trust. Despite this, Herald stated that the majority of other investors supported the offer.
The trust has indicated that it is engaged in ongoing discussions with Saba Capital to formulate a new offer that may be more amenable to the US firm. Last year, Saba Capital attempted to remove the trust's board of directors.
