London-listed investment trusts are looking to beef up their defences against attacks by activist investors after raids by hedge fund vulture Saba.
It comes as the firm, led by Boaz Weinstein, heads for a showdown with the Edinburgh Worldwide Investment Trust at its meeting on Tuesday when the results of a vote tabled by Saba to oust the firm’s entire board will be revealed.
The raid on the £784 million trust, whose share price has risen after Saba’s first attempt to unseat the board was defeated in February last year, has pushed other companies in the traditionally sleepy sector to draw up plans to defend themselves if an activist comes knocking.
On the attack: Saba, led by Boaz Weinstein, is heading for a showdown with the Edinburgh Worldwide Investment
Some trusts have put out contracts for PR firms stating bidders must have experience of defending firms against activists, industry sources say.
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