Finance
US investor Saba Capital blocks merger of Baillie Gifford-managed trusts in London
Published by Global Banking & Finance Review®
Posted on December 2, 2025
2 min readLast updated: January 20, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on December 2, 2025
2 min readLast updated: January 20, 2026
Saba Capital blocked a merger of Baillie Gifford-managed trusts, affecting shareholder options and sparking further discussions.
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, in the latest tussle between Boaz Weinstein's hedge fund and the pooled investment vehicles.
Baillie Gifford US Growth Trust and Edinburgh Worldwide Investment Trust (EWIT) said top shareholder Saba on Monday declined to support the proposed merger between the two trusts, derailing a deal that would have offered shareholders a cash exit of up to 40% and created a larger vehicle focused on U.S. companies under Baillie Gifford’s management.
Saba's veto marks the latest flashpoint in its dispute with the boards of the two London-listed trusts, following failed takeover bids rejected by more than 98% of other investors.
The hedge fund holds 28% of Baillie Gifford US Growth Trust and 25% of EWIT, according to LSEG data.
Weinstein's hedge fund, which targeted seven UK trusts earlier this year, accused the 160-year-old sector of underperformance - a claim the trusts reject.
They call Saba's campaign self-serving, while Weinstein says he aims to improve returns by merging unpopular trusts, buybacks, and more investments in private assets.
Investment trusts are listed vehicles that individuals can buy shares in to gain exposure to assets, from listed stocks to hard-to-access private companies.
"We are highly disappointed that Saba has chosen once again to impede other shareholders by blocking the Board from credibly presenting a potential merger opportunity that would result in a materially improved position for shareholders of both companies," said Tom Burnet, Chair of Baillie Gifford US Growth Trust.
Saba did not immediately respond to a Reuters request for comment. EWIT said it will continue talks with Saba to try to win support for the merger.
(Reporting by Yamini Kalia in Bengaluru; Editing by Rashmi Aich and Louise Heavens)
An investment trust is a type of company that invests in a diversified portfolio of assets, allowing shareholders to gain exposure to various investments, including stocks and bonds.
A hedge fund is an investment fund that employs various strategies to earn active returns for its investors, often using leverage and derivatives to maximize gains.
Corporate governance refers to the systems, principles, and processes by which a company is directed and controlled, focusing on the relationships among stakeholders.
A cash exit in investment trusts refers to a situation where shareholders are offered the option to sell their shares for cash, often during mergers or buyouts.
A shareholder veto is the power of a shareholder or group of shareholders to block a decision or action proposed by a company's board, often related to mergers or significant changes.
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