Boaz Weinstein steps up pressure on Baillie Gifford over SpaceX sale

Activist investor Boaz Weinstein's Saba Capital asked why Edinburgh Worldwide Investment Trust did not disclose an October sell-down of SpaceX holdings and whether the sale related to a proposed merger; a shareholder vote on board replacement is set for Jan. 20 and Saba has asked for answers by Jan. 9.

Activist investor Boaz Weinstein's hedge fund, Saba Capital Management, has intensified its campaign against the board of the London-listed Edinburgh Worldwide Investment Trust (EWIT) over a sale of SpaceX holdings. In an open letter published on Bloomberg Terminal, Saba asked why EWIT did not inform the market about the October sell-down and whether the sale related to a proposed merger with Baillie Gifford US Growth Trust. Saba says Baillie Gifford sold substantial portions of EWIT's and the US Growth Trust's SpaceX stakes in October at a valuation it says was materially below a December revaluation. EWIT declined to comment immediately, and Saba has set a Jan. 9 deadline for responses ahead of a shareholder vote on Jan. 20. What is reported: - Saba asked why EWIT did not communicate the October sell-down of its SpaceX stake to the market. - Saba says the trusts sold substantial SpaceX holdings in October at a valuation Saba describes as materially below a December revaluation. - The article reports Saba estimated the sale already cost shareholders about £37 million ($49.9 million). - A shareholder vote on Jan. 20 will consider replacing EWIT's board with nominees proposed by Saba; Legal & General said it will vote against Saba's plan. Summary: The matter centers on questions Saba has raised about disclosure and the timing of the sell-down, and on whether the transactions were connected to a proposed trust merger. EWIT declined to comment and Saba has asked for responses by Jan. 9; a vote on board replacement is scheduled for Jan. 20.