Activist investor Saba Capital opposes European Opportunities conditional tender offer

Against continuation unless a full exit offered

US activist investor Saba Capital, which holds a 5% stake in the European Opportunities trust (EOT), has opposed the board’s recommendation for shareholders to vote in favour of a conditional tender offer and continuation vote.

In a letter issued on Friday (20 October), partner and portfolio manager Paul Kazarian described the conditional tender offer announced earlier this month as "woefully insufficient". The EOT board has proposed holding a tender offer for 25% of the trust's shares if it underperforms its benchmark over the next three years. However, Kazarian noted the trust has underperformed its benchmark by 40% over the last five years.  "The idea that an investment advisor should only provide an option for shareholders to redeem 25% of their investment, if the fund underperforms for another three yea...