Saba one share away from triggering bid for Herald investment trust

Not forced to sell

Herald investment trust’s (HRI) ongoing share buyback scheme has pushed activist hedge fund Saba Capital to exceed 30% of the trust’s issued shares, the threshold needed to automatically trigger a bid for the trust.

However, given that Saba has entered this territory passively, having previously held a 29.9% position in Herald prior to the latest buybacks, a vote will not be triggered if Saba does not buy.  According to QuotedData's senior analyst Matthew Read, just one additional share purchase from Boaz Weinstein's hedge fund would trigger a bid for the £1.2bn trust. Herald survives continuation vote and sees off Saba shutdown fears Saba is also not required to reduce its current position to below the 30% threshold.   In a stock exchange notice, it was confirmed that "no acquisition or di...