- John Paulson, whose hedge fund holds a 6.6% stake in AngloGold Ashanti (AU -1%), says he opposes the miner’s plan to raise $2.1B from investors while spinning off non-South African assets because it will destroy shareholder value.
- AU announced yesterday it will create a new company holding its foreign assets; it plans to retain 65% of the new company, with the remaining equity distributed to shareholders.
- Paulson has said AU could unlock value if it split into a high-growth international business and a mature gold producer in South Africa, but "the way this restructuring is being implemented, it’s destroying value because of dilution."