7th Jan 2026 12:03
(Alliance News) - Edinburgh Worldwide Investment Trust PLC on Wednesday called for shareholders to vote against Saba Capital Management LP's attempts to replace multiple directors, ahead of its requisitioned general meeting on January 20.
Activist investor Saba had, earlier on Wednesday, issued an open letter "requesting transparency" on "Baillie Gifford's decision to materially reduce EWI's stake in SpaceX". The trust reduced its SpaceX holding in October by around 35%, while Baillie Gifford US Growth Trust PLC cut its own stake by around 49%.
Baillie Gifford US and Edinburgh Worldwide outlined the proposed merger in early December, but faced opposition from Saba, which, as of December 2, held 29% and 30% stakes in each trust, respectively.
"As the largest shareholder in the [Edinburgh Worldwide], we are deeply concerned at the recent sell-down by Baillie Gifford of the company's stake in SpaceX – the crown jewel of the company's portfolio – just two months prior to SpaceX's scheduled revaluation, in a move that appears to defy commercial logic," Saba stated in Wednesday's open letter. "We are particularly concerned that this sale was instead motivated by a desire on the part of both Baillie Gifford and you, the [EWIT] board, to facilitate a merger of the company with [Baillie Gifford US]."
Saba continued: "Losing out on a significant portion of the gains represented by SpaceX's recent revaluation represents a serious misstep.
"We believe that, before voting at the general meeting...shareholders deserve answers to critical questions regarding Baillie Gifford's decision to sell down the position, the board's knowledge of this decision and what the board has done in response to investigate."
Responding to Alliance News' request for comment, an EWIT spokesperson said: "Saba's open letter today adds to the numerous inaccurate statements and misleading assertations it is making designed to mislead shareholders as part of this US hedge fund's aggressive campaign to achieve its ultimate objective – to seize control of the company to prioritise its own commercial interests to the potential detriment of other shareholders.
"We look forward to answering shareholders' questions in an open Q&A session this Friday, where we will also address Saba's misleading assertations on SpaceX."
Later on Wednesday, Edinburgh Worldwide noted the recommendation by independent voting adviser ISS that shareholders vote against all Saba resolutions at the general meeting.
Saba is calling for the removal of all six independent non-executive directors from EWIT's board, including Chair Jonathan Simpson-Dent.
It is also calling for the election of Gabi Gliksberg, Michael Joseph and Jassen Trenkow in their place, claiming that the three "bring the right experience and objectivity to maximise long-term value creation for all shareholders."
Simpson-Dent commented: "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.
"If shareholders want to prevent this US hedge fund from taking control of the company on the cheap, it is critical that they vote against all of Saba's resolutions before the opportunity for doing so closes for many next week."
Edinburgh Worldwide will hold the live Q&A session with Simpson-Dent on Friday at 1400 GMT.
Shares in EWIT were 1.3% higher at 225.95 pence on Wednesday afternoon in London. Baillie Gifford US shares were up 0.9% at 292.03p.
By Emma Curzon, Alliance News reporter
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Related Shares:
Edinburgh Worldwide Investment TrustBaillie Gifford US Growth Trust