Saba Capital Management has withdrawn its requisition notice of European Smaller Companies Trust after discussions with the board.
The US hedge fund has withdrawn the requisition for a period of 30 days to allow both parties to enter into good-faith negotiations aimed at achieving an outcome that benefits all shareholders.
Saba had requisitioned the board, along with three other trusts, earlier this week to call a general meeting in a bid to get the four trusts to move to an open-ended structure.
The board said it would provide a further update in due course.
