Billionaire hedge-fund manager John Paulson is among investors pushing for Canadian miner Detour Gold Corp. to put itself up for sale, citing stock losses amid managerial missteps.
In a letter to the Toronto-based company’s board, Paulson & Co. said directors had “failed to recruit and oversee a management team capable of operating the Detour Lake mine in a manner that delivers returns to shareholders.” The letter, a copy of which was obtained by Bloomberg, was signed by John Paulson and Marcelo Kim, a partner at the firm.
Paulson & Co., whose $9 billion in assets includes a 5.4 percent stake in Detour, wants the board to explore all strategic alternatives, including a sale. Those sentiments were echoed by other shareholders, including Franklin Templeton, Mackenzie Investments, Tocqueville Asset Management and VanEck.
“At this point it is incumbent on you to see if other companies are ready to pay a full and fair price for the company,” Paulson and Kim wrote. The firm said it had previously informed the Detour board of interest from would-be buyers.
Detour Investor Relations Director Laurie Gaborit and Interim Chief Executive Officer Michael Kenyon didn’t immediately respond to email and telephone messages seeking comment.
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