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Northern Star rejects Elliott bid to add six directors to its board

The gold producer said it would not appoint at least three of Elliott’s nominees without first assessing their credentials, as leadership transitions and weaker shares weigh on the dispute.

Reported · Written up by our desk · Hedge Funds

Northern Star Resources has rejected activist investor Elliott Investment Management’s proposal to install six new directors, arguing that Elliott’s demands would undermine proper corporate governance, according to a report by Northern Miner.

The Australian gold producer said Elliott had not shown a clear need for changes to its strategy, and that it would not agree to appoint at least three of Elliott’s nominees without first conducting an assessment of their credentials and suitability for the board.

Elliott has put forward six candidates, including former Anglo American chief executive Mark Cutifani, saying a reconstituted board would provide stronger oversight for incoming CEO Suresh Vadnagra and help drive a detailed review of the company’s operations and strategy.

Northern Star chair Michael Chaney rejected Elliott’s approach, saying the activist made demands that no responsible board should accept and did not identify specific measures that were not already being considered or implemented by management. The dispute is unfolding during a broader leadership transition, with Vadnagra preparing to take over as CEO and changes to the board and committee structure, while the stock closed up 0.4% at AUD23.04 on 13 August, and remains down 5.4% over the past six months as the gold price has declined.

Latest closeGold $4,408.20 ▼0.0%

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