Saba Capital has withdrawn its requisition of Middlefield Canadian Income following “constructive discussions” between the hedge fund and the investment trust’s board.
The requisition, which called for a vote on transitioning the investment trust to an open-ended vehicle, has been withdrawn for 60 days.
In a stock exchange announcement last Friday (21 February), the Middlefield board said the period would enable it to formulate proposals that are in shareholders best interests.
See also: Trust Talk: The AIC’s Richard Stone on activism, engagement and the Saba saga
Saba initially requisitioned seven investment trust boards in December, calling votes on replacing the directors at each company. However, shareholders at all seven trusts rejected the proposals.
In a change in strategy, Saba requisitioned a further four boards earlier in February.
However, Saba temporarily withdrew its requisition notice at Janus Henderson’s European Smaller Companies Trust on 14 February in a similar move to the announcement at Middlefield Canadian Income.