UPDATE 1-Second activist targets Canadian miner Detour, seeks board changes – by John Tilak (Reuters U.S. – October 16, 2018)


TORONTO, Oct 16 (Reuters) – U.S. hedge fund Livermore Partners has called for an overhaul of the board at Detour Gold Corp and a strategic review, becoming the second activist to target the Canadian mining company.

Livermore sent a letter dated Oct. 16 to Detour in which Livermore Managing Director David Neuhauser said the board had failed its shareholders on “numerous governance and operational matters.” The letter was seen by Reuters.

Livermore has engaged in other activist campaigns including at Canadian and UK media company Entertainment One Ltd. Livermore declined to reveal the size of its stake in Detour due to the fund’s policy not to disclose stakes unless it has to file with regulators.

The letter followed U.S. hedge fund Paulson & Co asking for Detour’s entire board to be replaced and demanding that the company run a formal process to evaluate alternatives.

“We think there needs to be wholesale change at the board level,” Neuhauser said in an interview. “I have zero conviction that the current management team and board can execute,” he said.

For the rest of this article: https://www.reuters.com/article/detour-gold-livermore/update-1-second-activist-targets-canadian-miner-detour-seeks-board-changes-idUSL2N1WW21N

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