Iamgold says activist has 'alarming disregard for good governance'
BNN Bloomberg
Iamgold Corp. fired back Wednesday morning against the activist investor that is threatening to launch a proxy fight with an eye to overhauling the company's board of directors.
Iamgold Corp. fired back Wednesday morning against the activist investor that is threatening to launch a proxy fight with an eye to overhauling the company's board of directors.
The Toronto-based miner pulled back the curtain on its talks with RCF Management, an investor it describes as being a "a recent" holder of a 5.2 per cent stake in the company.
In a release, Iamgold said its management, directors and legal counsel recently participated in talks with RCF over a two-week period, and agreed to a standstill agreement "to avoid the unnecessary cost and distraction of a proxy contest."
Iamgold said the standstill was designed as a cooling-off period when its board and a search firm would evaluate RCF's nominees for the company's board of directors.
RCF identified those nominees in an open letter Tuesday as Maryse Belanger, who currently sits on the boards of Equinox Gold Corp., Pure Gold Mining Inc., and Sherritt International Corp.; David Smith, who sits on the boards of Hudbay Minerals Inc. and Pretium Resources Inc.; and Lawrence Haber, who sits on the board of Eco Oro Minerals Corp.
In its response Wednesday, Iamgold said that during the standstill its board came to the conclusion that Belanger and Smith would be "acceptable" additions to its board, and it was prepared to "immediately" bring them into the boardroom.
After Gildan Activewear Inc.’s entire board of directors and Chief Executive Officer quit last week, BNN Bloomberg will speak with Glenn Chamandy, the clothing company’s reappointed CEO and president, to discuss the five-month feud with activist investors and the future of Gildan under his reinstated leadership.