July 18 (Reuters) - Paulson and Co, a hedge fund run by activist investor John Paulson, said Detour Gold had received a buyout offer from another gold miner, sending the Canadian company’s shares up 13 percent.
Paulson was informed of the offer in an unsolicited letter by the company’s interim chief executive officer, Michael Kenyon, last week, the hedge fund said in a statement.
Kenyon also said Detour would only sign a confidentiality agreement with the interested party if both the party and Paulson agreed to a stand-still agreement to prevent any hostile takeover if the companies could not strike a deal.
Following the letter, Paulson requested that the company’s board to immediately disclose the information to all shareholders and announce a formal process to evaluate all strategic options, which the company has not done so far.
Paulson, which has 5.4 percent stake in Detour, has been threatening to replace the board if the company does not successfully explore strategic alternatives, including a sale, and look for a new CEO. (Reporting by Anirban Paul in Bengaluru; Editing by Sweta Singh)