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Investment Trusts Brace for Activist Investor Onslaught
18 Jan
Summary
- London trusts bolster defenses against activist investors.
- Saba, led by Boaz Weinstein, targets Edinburgh Worldwide Trust board.
- Companies seek PR firms experienced in activist defense strategies.
Investment trusts listed in London are enhancing their defenses against potential attacks from activist investors. This strategic shift follows recent aggressive actions by hedge fund Saba, led by Boaz Weinstein.
Saba is currently poised for a significant confrontation with the Edinburgh Worldwide Investment Trust. A vote to remove the entire board is scheduled, with results expected soon. This raid on the £784 million trust has prompted a defensive reaction from other entities in the traditionally stable investment trust sector.
Industry sources indicate that some trusts are now engaging PR firms, specifically seeking those with a proven track record in defending companies against activist investors. This proactive measure signals a heightened awareness and preparedness for potential future challenges.
