Dec 2 (Reuters) – U.S. activist investor Saba Capital has blocked a proposed merger of two London-listed Baillie Gifford-managed investment trusts, the firms said on Tuesday, derailing a deal that would have offered shareholders a 40% cash exit to net asset value.
Baillie Gifford US Growth Trust said it has been in active discussions with the board of peer Edinburgh Worldwide Investment Trust on a potential merger that would refine the companies’ investment strategies and offer shareholders a significant cash exit.
The veto by top shareholder Saba, which holds a 29% stake in Baillie Gifford US Growth Trust, marks the latest clash between Boaz Weinstein’s hedge fund and the boards of the two London-listed trusts, following Saba’s failed takeover bids that were rejected by more than 98% of non-Saba investors.
A merger of the two investment trusts would have created an enlarged trust investing predominantly in listed and private U.S. companies and managed by Baillie Gifford, the companies said in a statement.
(Reporting by Yamini Kalia in Bengaluru; Editing by Rashmi Aich)
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