Hedge fund Paulson & Co. ratcheted up its campaign for an overhaul at Detour Gold Corp. by calling for a special meeting of shareholders with the aim of replacing the majority of its board.
Concerned about “meritless litigation strategies,” the fund run by billionaire John Paulson said Thursday in a statement the special meeting should be held no later than Sept. 28.
The news follows 24 hours of increasingly acrimonious public commentary by the two companies, with each accusing the other of providing false and misleading information and both saying they have complained to the Ontario Securities Commission. Paulson accused the gold miner of failing to share information about a possible buyer. Detour said it hasn’t received any offers to purchase shares in the Toronto-based gold miner.
This week’s back-and forth followed public pressure from Paulson in June. Supported by several other Detour investors, Paulson last month urged Detour to put itself up for sale, citing stock losses and accusing executives of poor management. Subsequently Paulson also said it would push to replace the board of directors. On Wednesday, Coast Capital Management, the investment firm founded by James Rasteh, joining the push for a sale.
Laurie Gaborit, a spokeswoman for Detour, didn’t immediately respond to a request for comment on Thursday.
CIBC analyst David Haughton said in a research note that 12 miners could potentially be interested in Detour.
Paulson has become increasingly vocal about its grievances with the gold sector and is looking to form a coalition of investors to tackle some of its biggest complaints.
--With assistance from Aoyon Ashraf and Jacqueline Thorpe.
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