Dominion Diamond should open books to potential suitors: top shareholder

Tue Mar 21, 2017 3:54pm EDT
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By Nicole Mordant

(Reuters) - Dominion Diamond (DDC.TO: Quote) (DDC.N: Quote), target of a $1.1 billion unsolicited bid, should run a formal sales process for the company and open its books to what could be several interested parties, Dominion's biggest shareholder told Reuters on Tuesday.

The board of Dominion, the world's third-largest diamond producer by value, has a responsibility toward its shareholders to consider the proposal from U.S.-based The Washington Companies, as well as possible other bids, Jamie Horvat, fund manager at M&G Investments said.

M&G owns around 11 percent of Dominion, Horvat said.

"The best outcome for the owners right now is to do a proper strategic review, have people sign up who are interested," London-based Horvat said by phone. "Maybe others will come out of the woodwork," he said.

Dominion was not immediately available for comment.

On Sunday, The Washington Companies, a group of privately held North American mining, industrial and transportation businesses founded by billionaire Dennis Washington, revealed it had made a $1.1 billion all-cash proposal for Dominion.

In response, Dominion said its board had considered Washington's proposal, but that the terms of the proposed talks were unacceptable.

Dominion shares were up 2.0 percent at $12.45 on the New York Stock Exchange on Tuesday, still below the $13.50 a share offer price that Washington proposed.   Continued...