GREY:DRGDF - Post by User
Post by
mrmarket1on Dec 13, 2018 10:54am
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Post# 29109631
market indifferent
market indifferent John Paulson Photographer: Scott Eells/Bloomberg Paulson & Co. has convinced shareholders of Detour Gold Corp. to overthrow the bulk of the Canadian miner’s board of directors, ending a nasty six-month proxy battle.
Five of the Paulson-backed nominees were chosen to the nine-person board, according to two people familiar with the final voting tally at a special shareholders’ meeting in Toronto Thursday. Interim Chief Executive Officer Michael Kenyon and Chairman Alex Morrison were not re-elected to the board.
Key Insights
- Control of the board sets Paulson up to push for further changes in a company the hedge fund has said is grossly mismanaged
- The result provided some vindication for activist investor John Paulson, who personally lobbied investors in the final weeks of the battle, telling them Detour’s board “makes shareholders the laughingstock of the investment community”
- The vote came in spite of the advice of two shareholder advisory groups that had recommended Detour make less dramatic changes to its board than Paulson wanted
Market Reaction
- Detour shares rose 0.6 percent to C$10.92 at 10:12 a.m. in Toronto