Dominion Diamond open to dialogue with hedge fund K2 over policies

Tue Dec 22, 2015 8:48am EST
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TORONTO Dec 22 (Reuters) - Dominion Diamond Corp said Tuesday it looked forward to having an open dialogue with a group of investors led by Canadian hedge fund K2, who believe that the diamond miner's policies have unduly hurt its share price.

Dominion's "share price has suffered excessively and unnecessarily as a result of misguided policies and missed opportunities," a group of investors led by Toronto-based K2 & Associates, who collectively own a 5.4 percent stake in Dominion, said in a securities filing on Monday.

Addressing the company's lead director, the group said Dominion had so far failed to articulate a clear plan of action to remedy these issues.

K2 said it wanted to engage in talks with the independent members of the company's board about opportunities to maximize shareholder value.

Dominion, which owns stakes in two of Canada's top diamond mines, said its board and management were committed to creating value for its stakeholders and would continue to take actions to accomplish this goal and position the company for future growth and success. (Reporting by Euan Rocha; Editing by Bernadette Baum)