Bloomberg reported that billionaire John Paulson, whose hedge fund owns 6.6 percent of AngloGold Ashanti Ltd. (NYSE:AU) is not keen on the company’s plan to raise $2.1 billion from investors and then spin off its assets outside of South Africa.

Paulson said:

The concept is good but the execution, the way they’re doing it with this massive dilutive equity offering, it’s value-destructive. I have absolutely no intention of voting this deal.

The market news states:

Paulson & Co. has said the company could unlock value if it split into a high-growth international business and a mature gold producer in South Africa. The limited benefits of a partial spinoff are outweighed by the dilution of the equity offering, Paulson said in the interview.

Click here to read the full Bloomberg report.

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