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(Sharecast News) - Edinburgh Worldwide Investment Trust has urged shareholders to once again reject the demands of "aggressive" Saba Capital Management after it called for the removal of all six independent non-executive directors and the appointment of three of its own US-based nominees.
EWI said on Wednesday that it will convene a general meeting, during which it will "strongly urge" shareholders to vote against Saba's proposed resolutions, as it argued the latter wants to "take control on the cheap". The New York-based investment firm has a 30% stake in the trust.
"Saba is again attempting to seize control of the company," EWI said. A similar attempt to take control was overwhelmingly rejected in February 2025.
"The board believes that Saba's objectives have not changed. Saba continues to prioritise its own commercial interests to the potential detriment of other shareholders," it said. EWI also pointed out that Saba's nominee directors would not be independent. It noted that all three have been selected by Saba, and said their appointment would effectively hand Saba control of the company.
The trust said Saba has not disclosed its plans should it gain control. "It previously stated its intention to be appointed as investment manager, which would fundamentally change the company's investment strategy and financially benefit Saba," it said.
Chair Jonathan Simpson-Dent said: "Since this board set out its Path for Growth strategy just over twelve months ago, the company has made strong progress. Performance has exceeded the benchmark, and the discount compares very favourably with peers. Shareholders are benefiting from access to a distinctive, diversified global portfolio of high-growth companies, both public and private, which we are confident can deliver long-term outperformance.
"Despite this significant progress, an aggressive US hedge fund wants to remove the entire board and replace it with its own three US nominees in another attempt to seize control for its own commercial advantage, at the expense of other shareholders.
"We urge Saba to explain to EWIT shareholders its intentions beyond replacing the board, to allow shareholders to make an informed choice in January rather than face considerable uncertainty should it succeed."
He added: "If shareholders want to keep the company out of Saba's control and ensure they have a voice in its future, they must turn out and vote in even greater numbers than before."
Managed by Baillie Gifford, EWI counts Elon Musk's SpaceX among its top 10 portfolio holdings.