financetom
Business
financetom
/
Business
/
BlackRock shareholders vote to keep company directors in place in fight with Saba
News World Market Environment Technology Personal Finance Politics Retail Business Economy Cryptocurrency Forex Stocks Market Commodities
BlackRock shareholders vote to keep company directors in place in fight with Saba
Jun 28, 2024 12:20 PM

NEW YORK (Reuters) - BlackRock ( BLK ) won a fight with hedge fund manager Boaz Weinstein this week when shareholders voted at four of its closed-end funds to keep the asset manager's directors in place and retain it as the manager, new data released on Friday show.

Weinstein's Saba Capital Management, a large owner in BlackRock's ( BLK ) closed-end funds, and BlackRock ( BLK ), the world's biggest asset management company with more than $10 trillion in assets under management, have been locked in battle for months over the future of 10 BlackRock ( BLK ) closed-end funds.

Saba wanted investors to replace the BlackRock ( BLK ) directors by electing its nominees to the funds' boards. It also wanted investors to fire BlackRock ( BLK ) as manager at some of the funds.

"Shareholders rejected Saba's efforts to unseat BlackRock ( BLK ) as investment adviser and voted to support the Board's nominees at several funds," Glenn Hubbard, Chair of the Boards of BlackRock Closed-End Funds said in a statement. "For the second year in a row, Saba has failed to convince shareholders that Saba will deliver more value than the funds' current stewardship and management teams," he added.

Saba was not immediately available for comment.

Investors voted at four BlackRock ( BLK ) funds this week () after having voted at six (, and) last week.

Meetings at and have been adjourned until next month due to a failure to achieve quorum. Saba Capital Management did not secure enough votes to replace directors or fire the fund manager at any of the eight funds.

The preliminary vote count is subject to final certification by the independent inspector of elections, BlackRock ( BLK ) said.

Saba has cited poor performance as the reason change is needed at the funds which jointly manage roughly $10 billion.

Closed-end funds, unlike open-end funds, don't issue or redeem new shares, which can leave them trading above or below the value of the securities held by the fund.

For months, Saba has argued that investors will benefit when the discount to the BlackRock ( BLK ) funds' underlying assets is shrunk and that BlackRock ( BLK ) should buy back shares from investors which could unlock some $1.4 billion in value.

BlackRock ( BLK ) said it has taken action to improve performance and that its directors are better choices than Saba's nominees.

The battle between BlackRock ( BLK ), which manages money for retail investors and pension funds and advises governments, and Weinstein, who most recently made headlines by last year when he and other prominent investors tried to buy hedge fund Sculptor Capital Management after the company agreed to sell to someone else, is shining light on an often overlooked part of the mutual fund industry.

Saba has taken the fight against BlackRock ( BLK ) to court and key rulings came this week.

BlackRock ( BLK ) was advised by JPMorgan Chase, Sidely Austin LLP, Willkie Farr & Gallagher LLP, Stradley Ronon, and Georgeson.

Comments
Welcome to financetom comments! Please keep conversations courteous and on-topic. To fosterproductive and respectful conversations, you may see comments from our Community Managers.
Sign up to post
Sort by
Show More Comments
Related Articles >
Market Chatter: Blackstone Taps Banks for $3.64 Financing in AirTrunk Buyout
Market Chatter: Blackstone Taps Banks for $3.64 Financing in AirTrunk Buyout
Oct 27, 2024
12:19 PM EDT, 10/25/2024 (MT Newswires) -- Blackstone (BX) is securing 5.5 billion Australian dollars ($3.64 billion) in financing from banks, including Citigroup, DBS Group, and Deutsche Bank, for its proposed acquisition of AirTrunk, sidelining private credit funds that were earlier considered, Bloomberg reported Friday, citing people familiar with the matter. The funding package will include a term loan and...
New York Stock Exchange Plans to Extend Arca Electronic Equities Exchange Weekday Trading to 22 Hours a Day
New York Stock Exchange Plans to Extend Arca Electronic Equities Exchange Weekday Trading to 22 Hours a Day
Oct 27, 2024
08:12 AM EDT, 10/25/2024 (MT Newswires) -- Intercontinental Exchange's ( ICE ) New York Stock Exchange unit said Friday it intends to extend weekday trading to 22 hours per day on its NYSE Arca electronic equities exchange. Subject to regulatory approval, the extended trading would run from 1:30 am ET to 11:30 pm ET on all weekdays, excluding holidays, the...
Gentex's Q3 Performance Defies Auto Industry Headwinds, Trims 2024 Outlook
Gentex's Q3 Performance Defies Auto Industry Headwinds, Trims 2024 Outlook
Oct 27, 2024
Fire protection company Gentex Corporation ( GNTX ) shares are trading higher after the company reported third-quarter earnings per share of 53 cents, beating the street view of 49 cents. Quarterly revenues of $608.53 million, beating the analyst consensus of $592.14 million. For the third quarter, the gross margin was 33.5% versus 33.2% a year ago due to the higher...
Market Chatter: Wells Fargo to Take Up to $3 Billion in Commercial Real Estate Losses
Market Chatter: Wells Fargo to Take Up to $3 Billion in Commercial Real Estate Losses
Oct 27, 2024
06:53 AM EDT, 10/25/2024 (MT Newswires) -- Wells Fargo ( WFC ) Chief Executive Charlie Scharf said the bank may lose $2 billion to $3 billion on commercial real estate loans over three or four years, Reuters reported Thursday. Scharf said at an event that the lender has proper reserves to handle the losses, its balance sheet is de-risked, and...
Copyright 2023-2026 - www.financetom.com All Rights Reserved