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Sector
Basic Materials
Size
Large Cap
Market Cap £91.68bn
Enterprise Value £95.65bn
Revenue £32.54bn
Position in Universe 14th / 1817

Activist investor Pentwater takes aim at Turquoise, Rio boards over CEO exit

Fri 5th March, 2021 4:15pm
March 5 (Reuters) - Activist investor Pentwater Capital
Management LP on Friday condemned the surprise resignation of
Turquoise Hill Resources Ltd's  TRQ.TO  chief executive officer
following pressure from the Canadian miner's top shareholder Rio
Tinto  RIO.L .
    Turquoise Hill said on Thursday Ulf Quelmann resigned,
effective March 3, after Rio said it would vote against his
re-election to the board.  urn:newsml:reuters.com:*:nL3N2L239I
    Pentwater, Turquoise Hill's largest shareholder after Rio
with a 9% stake, said it believed the boards of Turquoise and
Rio breached their legal obligations in the way Quelmann's
departure was handled.
    In response to Pentwater's statement, a Rio spokesman said
the company supports the reset of leadership at Turquoise.
    Turquoise Hill did not immediately respond to requests for
comment.
    During Quelmann's over two-year tenure as CEO, Turquoise
found itself locked in a feud with Rio over how to fund the
underground expansion of the massive Oyu Tolgoi copper-gold mine
in Mongolia. 
    Rio is the operator for the mine and owns 51% of Turquoise
Hill, which in turn owns 66% of Oyu Tolgoi.
    Pentwater did not detail what actions it plans to take and
did not immediately respond to a request for comment. 

 (Reporting by Shariq Khan in Bengaluru; Editing by Sriraj
Kalluvila)
 ((Shariq.Khan@thomsonreuters.com; Within U.S.+1 646 223 8780,
outside U.S. +91 80 6182 2681; Twitter: @shariqrtrs;))
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