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Iimia chief Greenwood claims STS is defying logic by fighting against bids

Iimia chief investment officer Nick Greenwood says the board of Securities Trust of Scotland is fighting against logic in the drawn-out sage of fending off bids.

STS has seen separate bids from Perpetual Income and Growth Trust and Lowland.

Greenwood, who runs Iimia Accelerated unit trust investing in investment trusts, claims STS would be better served by accepting Pigit’s offer but he believes that STS board has made its mind up and is acting unreasonably in its efforts to cling onto the assets.

However, STS chairman designate Neil Donaldson says, having received valid acceptances in respect of only 9.34 per cent of STS shares, Pigit may be considering whether pursuing the takeover campaign is in anyone’s best interests.

He adds that regardless of whether Pigit withdraws its offer or not, STS will continue to recommend investors to reject the proposal and says STS will press ahead with its own plans.

Donaldson says: “We believe that in the light of this message from Sec-urities Trust shareholders, both sets of shareholder would welcome Pigit withdrawing its offer.”

Greenwood says: “Shareholders should accept the Pigit bid in my view but the problem is that STS has developed an ‘It’s my ball, you can’t play with it’ attitude.

“If it was left to logic, it should be a slam dunk for Pigit. The investment trust sector does need the strong ones to be able to mop up the weak ones. If you do not allow the law of natural selection to take its course, it is very unhealthy for the industry more generally.”

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