Olshan Client Saba Capital Secures Votes for Tender Offer in Contentious Proxy Fight
The Wall Street Journal, Institutional Investor, and Dealbreaker have reported on Olshan client Saba Capital Management’s proxy fight over a closed end credit fund against Neuberger Berman High Yield Strategies Fund. Saba, which owns a 19.1% stake in Neuberger Berman’s High Yield Strategies Fund, proposed three measures at the latter’s annual meeting: electing a new slate of 3 directors, termination of the Fund’s Investment Management Agreement, and for Neuberger Berman to consider a tender offer. Despite Neuberger Berman’s misleading announcement that the proposals were “resoundingly rejected,” more of the Fund’s shareholders voted for all three of Saba’s proposals than against them, but because Saba’s slate of directors and its management agreement termination proposals did not receive a majority of votes outstanding, neither passed. Contrary to Neuberger’s victory claim, however, Saba’s tender offer proposal passed with a 62% majority of votes. Olshan represented Saba in this matter.