Elliott Management, a US activist hedge fund, has acquired a significant stake in Barrick Gold (TSX: ABX, NYSE: B) amid speculation of a potential corporate restructuring. The Financial Times reported this on Tuesday, indicatingthat the acquisition places Elliott among the top 10 shareholders of Barrick, which has a market capitalization of $63.7 billion.
Reports suggest that Barrick’s board is considering splitting the company into two entities: one focused on stable North American assets and the other on riskier operations in Africa and Asia. This consideration follows the recent departure of CEO Mark Bristow and has garnered a favorable response from Elliott, who is encouraged by the potential spinoff. Barrick’s shares rose 1.4% following the news, and year-to-date, the stock has surged nearly 135%.
Elliott Management, managing about $76 billion in assets, is no stranger to the mining sector and has previously invested in companies like Anglo American and Triple Flag Precious Metals.
