BAILLIE GIFFORD US GROWTH (USA) – Investment Trusts
| Price: 281.25p +0.5% | NAV: |
| Market Cap: £774m | Yield: n/a |
It looks as though another merger in the investment trust sector is about to fall through due to lack of shareholder support.
The boards of Baillie Gifford US Growth and EDINBURGH WORLDWIDE (EWI), also managed in-house, proposed what they called a ‘transformational merger opportunity’ which would allow for the continuation of the current investment strategy as well as a ‘material cash exit’ for shareholders.
However, Saba Capital, which owns 29% of BG US Growth shares and 30% of Edinburgh Worldwide, is witholding its support for the deal and continues to militate for the removal of all the trust’s directors.
Our View
When Saba unveiled its shareholdings across a range of investment trusts a little more than a year ago, along with its mission to improve shareholder returns, there was a mix of excitement and consternation across the sector.
So far, its record has been mixed, and feedback from some trusts has been less than positive citing a lack of willingness to engage or follow due process.
Baillie Gifford has said it will continue to consult with other shareholders to get their views but given Saba’s blocking stake this deal looks dead in the water.
Read the press release here: https://www.bailliegifford.com/en/uk/individual-investors/funds/baillie-gifford-us-growth-trust/
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