March 19, 2017 / 9:58 PM / a year ago

Washington Companies reveals stalled $1.1 bln bid for Dominion Diamond

NEW YORK, March 19 (Reuters) - The Washington Companies said on Sunday it had previously made a proposal to acquire all of the outstanding common stock of mining company Dominion Diamond Corp. for $13.50 a share.

The all-cash $1.1 billion offer was sent to the Dominion board of directors on Feb. 21, according to the statement, but subsequent discussions broke down.

“We are disappointed that Dominion’s board has thus far prevented Washington from moving ahead with its proposal under which shareholders would receive a substantial premium and immediate liquidity,” Lawrence Simkins, president of Missoula, Montana-based Washington, said in a statement on Sunday.

“We remain fully committed to completing this transaction,” he added.

Yellowknife, Canada-based Dominion did not immediately respond to a request for comment.

The offer price of $13.50 represents a 36 percent premium to Dominion’s closing stock price on March 17 and a 54 percent premium to the price when discussions ended on March 15, according to Washington, a group of privately held North American mining, industrial and transportation businesses founded by Dennis Washington. (Reporting by Lawrence Delevingne; Editing by Sandra Maler)

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