Edinburgh Worldwide Investment Trust rallies buyers in opposition to US raider Saba Capital

The war of words between investment trust Edinburgh Worldwide and a US hedge fund raider has intensified, with both sides accusing the other of misleading shareholders.

The boss of Edinburgh Worldwide Investment Trust (EWIT) said investors must turn out in force to prevent Saba Capital ‘from taking control on the cheap’.

But Saba chief Boaz Weinstein – whose firm holds 30 per cent of the shares – hit back and demanded answers over the London-listed trust’s decision to sell down its stake in Elon Musk’s SpaceX.

The clash came ahead of a crucial shareholder vote this month on Saba’s plans to unseat the board and replace them with its own placemen.

Edinburgh Worldwide’s defence has been bolstered by the backing of Legal & General and shareholder advisory group ISS. 

Chairman Jonathan Simpson-Dent said: ‘Shareholders should not be swayed by Saba misrepresenting the facts, ignoring the significant progress made following the implementation of the path for growth strategy and remaining silent on their ultimate objectives.

Raider: Saba Capital chief Boaz Weinstein (pictured) demanded answers over Edinburgh Worldwide Investment Trust’s decision to sell down its stake in Elon Musk’s SpaceX

‘Shareholders must turn out in force to prevent Saba from taking control.’

But describing SpaceX as the ‘crown jewel’ in the portfolio, Weinstein said selling at a price ‘far below’ the current value was ‘self-evidently unacceptable’ and done ‘without consulting shareholders’.

In an open letter he added: ‘Saba is just one of many shareholders deeply troubled by the SpaceX sell-down and frustrated by the board’s silence on this critical issue. Shareholders deserve full transparency.’

EWIT said Weinstein’s letter contained ‘numerous inaccurate statements’ designed to ‘mislead shareholders’ as part of an ‘aggressive campaign’ by Saba to seize control of the trust. 

The trust said that it would answer questions from investors in a session tomorrow afternoon.

At a meeting scheduled for January 20, Saba has proposed removing all six directors and replacing them with three of its own nominees.

It is Weinstein’s second attempt to unseat the board after a previous bid last February was defeated.

Legal & General said it would vote against Saba’s plans. And ISS recommended that investors oppose all of Saba’s proposals.