Saba Capital Management has withdrawn its requisition notice of Middlefield Canadian Income after discussions with the board.

Since the receipt of the requisition, the board said that it had consulted with a number of the company’s largest shareholders, including Saba, and following “constructive discussions”, Saba has agreed to withdraw the requisition for a period of 60 days to enable the company and its advisers to formulate proposals that are in the best interests of all shareholders.

Last week, Saba also withdrew the requisition notice on European Smaller Companies Trust 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.

The US hedge fund had requisitioned four companies earlier in February seeking to call a general meeting in a bid to get the four trusts to move to an open-ended structure. 

Middlefield’s board said it would provide a further update in due course.