The chair of the Baillie Gifford-managed £830 million Edinburgh Worldwide Investment Trust plc (EWIT) said New York activist hedge fund Saba Capital Management is “on the verge of taking control” of the fund.

EWIT chair Jonathan Simpson-Dent told a Q&A session with investors on Friday that if shareholders do not want the “Saba solution” then “even more” shareholders need to vote than the massive majority that rejected Saba’s first attempt to gain control of EWIT a year ago.

EWIT shareholders must vote by 12 noon on Saturday January 17 although some investment platforms may have deadlines as early as January 12.

The New York hedge fund wants to remove all six of Edinburgh Worldwide’s independent non-executive directors and appoint three US-based individuals nominated by Saba.

Saba Capital says that “together with certain of its affiliates” it is the “beneficial owner of interests in approximately 30%” of Edinburgh Worldwide.

Simpson-Dent told shareholders he does not believe it is “right” that a minority shareholder should be able to put in a new board, but added that Saba “could just get away with this.”

He added: “… the FCA needs to get involved here …”

Simpson-Dent said the costs to EWIT of fighting Saba amount to “an inordinate sum of money.”

** more to follow …