Northern Star Resources' board formally rejected a sale proposal from activist investor Elliott Investment Management. Chairman Michael Chaney stated that the board will engage with Elliott but believes the current timing is unsuitable for a sale.
Elliott recently acquired a 4% stake in the gold miner. The activist investor called for a strategic review based on operational missteps and share price underperformance.
Chaney confirmed that potential suitors approached the company over the past year. The board determined those discussions were not in the best interests of shareholders.
Northern Star shares fell 3.54% following the announcement. The stock price dropped to A$18.54.