A New York federal court has held that a closed-end fund can use a shareholder rights plan to fend off a control-seeking hedge fund — a significant development in the ongoing battle between closed-end funds and hedge funds. The court, however, limited multiple successive plans in certain specific circumstances. Partners Eben Colby, Elizabeth Gonzalez-Sussman and Kevin Hardy discuss the implications of this decision for closed-end funds and their strategies to counter activist hedge funds.
For further information, please contact:
Eben P. Colby, Partner, Skadden
eben.colby@skadden.com
