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Victory for Paulson in Detour proxy fight

Just a single Detour Gold director remains since activist investor Paulson & Co started agitating for change at the Canadian miner in June, with the dissident claiming victory Thursday in the months-long proxy contest.
Victory for Paulson in Detour proxy fight Victory for Paulson in Detour proxy fight Victory for Paulson in Detour proxy fight Victory for Paulson in Detour proxy fight Victory for Paulson in Detour proxy fight

Paulson & Co this week claimed victory in its long-running battle with Incumbent Detour Gold management after replacing the entire board with its nominees

Staff Reporter

At a special meeting of Detour owners held earlier in the day, the company's shareholders voted to remove five of the eight incumbent directors from the Detour board. 

Long-serving directors Lisa Colnett, Edward Dowling, Michael Kenyon, Alex Morrison and Jonathan Rubenstein were replaced by nominees put forward by Paulson, including Steve Feldman, Chris Robison, Ron Simkus, Dawn Whittaker and Bill Williams.

"Today's outcome represents a major victory for all of Detour's shareholders. We support Detour Gold's new board of directors and believe that our investment is now in the capable hands of experienced, independent and professional directors," billionaire investment manager John Paulson said.

"We look forward to Detour turning the page on its recent challenges and creating value for all shareholders."

Paulson is one of Detour's largest investors, exercising control or direction over about 5.7% of Detour's shares.

The New York-based investment fund manager first invested in the company nine years ago, having provided C$280 million in direct equity and US$250 million in convertible notes to finance its mine completion.

Paulson, along with several other major shareholders in the company, said it had grown increasingly frustrated by Detour's inability to appropriately manage shareholders' assets, having destroyed billions of dollars of value in the process.

Interim Detour CEO Michael Kenyon has resigned. 

Detour chairman James Gowans said: "With the distraction of the proxy contest now behind us, I welcome our new directors and look forward to working with them to recruit a new CEO and build value for all shareholders."

Detour's equity (TSX:DGC) rose 2.4% in Toronto to $11.12 immediately after the voting result was published and last traded at $10.94, giving the company a market value of $1.91 billion.