Matthew Read and James Carthew comment on Herald’s tender offer proposals in Linus Uhlig’s article:
Matthew Read, senior analyst at QuotedData, explained: “The backstop tender offer ensures that no shareholder can be left stranded in a vehicle under Saba’s control, unless they want to be, although the scale of Saba’s previous defeats suggest that this will not be the preferred option.
“We think this is a smart move on the part of Herald’s board that protects non-Saba shareholders, and one that other boards will take note of.”..
According to James Carthew, head of investment companies research at QuotedData, Saba’s response to Herald’s proposal “will finally make its intentions clear to investors”.
“If it blocks the tender, it will be proof that its real goal is to find ways of trapping investors in funds that it can extract management fees from. Shrinking Herald is bad news for small-cap tech companies but this is a boil that needs to be lanced,” said Carthew.
Read the article here