Canada’s Dominion Diamond accepts sweetened bid from U.S. billionaire – by Nicole Mordant and John Benny (Reuters Canada – July 17, 2017)

http://ca.reuters.com/

(Reuters) – Canada’s Dominion Diamond Corp on Monday agreed to a sweetened takeover offer of $1.2 billion from U.S. billionaire Dennis Washington that will take private the world’s third biggest diamond company by market value.

U.S.-listed shares of Dominion leapt 4 percent to $14.04, while its Toronto-listed shares rose nearly 5 percent, after Dominion said Washington Companies will acquire all of shares for $14.25 per share in cash.

The offer price is 5 percent higher than the Missoula, Montana-based company’s March 19 offer of $13.50 per share, which Dominion rejected as too low. Reuters reported on Friday that Dominion was in advanced and friendly talks with Washington on a sweetened cash takeover bid.

M&G Investment Management, Dominion’s biggest shareholder with a 6.2 percent stake, supports the transaction, M&G fund manager Jamie Horvat said. “Management and the board did a very good job of maximizing shareholder value,” Horvat said in an interview.

Washington Companies, founded by industrialist and entrepreneur Washington, has mining, industrial and transportation businesses across North America.

For the rest of this article: http://ca.reuters.com/article/businessNews/idCAKBN1A217A-OCABS

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