October 12, 2018 / 4:37 PM / in 2 years

Detour Gold says hedge fund Paulson rejected its settlement offer

Oct 12 (Reuters) - Canadian gold miner Detour Gold Corp said on Friday that its settlement offer regarding management changes, which included a plan to appoint a new chief executive officer, was rejected by hedge fund Paulson & Co.

The settlement would have resulted in almost half of its board being refreshed in six weeks, with interim CEO Michael Kenyon stepping down before the next annual general meeting.

Detour had also offered to drop a civil claim against activist investor John Paulson’s hedge fund, which owns 5.4 percent stake in the company.

Last month, the hedge fund had said it intended to solicit proxy forms in support of removal of certain directors from Detour’s board.

In July, the hedge fund nominated eight members to Detour board, having previously threatened to replace the company’s board if it did not successfully explore strategic options including a sale and the appointment of a new CEO.

Paulson & Co was not immediately available to comment.

Reporting by Debroop Roy in Bengaluru; Editing by Arun Koyyur

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