Paulson & Co., the U.S. hedge fund that won worldwide recognition for its correct bets on the U.S. housing market prior to the global financial crisis, isn’t backing down in its fight against the management of Toronto-based Detour Gold Corp.
On Thursday, Paulson & Co. announced it plans to call a special shareholder meeting by no later than July 28, when it will ask the rest of the company’s shareholders to oust “a majority” of the company’s board of directors.
The announcement followed a contentious exchange between the two companies a day earlier, in which Detour denied receiving any purchase offers, prompting Paulson & Co. to release an email it said the company’s interim chief executive Michael Kenyon sent that appeared to show otherwise. Paulson & Co. said a lawyer representing Detour on Wednesday threatened litigation against the hedge fund.
“Detour’s management and directors appear intent on using the company’s resources to engage in meritless litigation strategies,” Paulson & Co. wrote in a press release to shareholders on Thursday.
As one of the largest institutional investors in the company — it owns more than five per cent — it is entitled under Ontario securities laws to requisition a special meeting of shareholders.