Dominion Diamond Corp. (
TSX: T.DDC,
Forum) is looking to secure a deal with other Canadian diamond miners in a bid to thwart an unsolicited takeover offer from The Washington Companies, according to a published report.
The Washington Cos. Is a collection of private companies owned by American industrialist Dennis Washington. Washington is not currently involved in the diamond business.
News of the offer has prompted speculation about who else might be interested in Dominion.
The Washington Companies have offered to acquire 100% of Dominion for US$13.50 in cash, marking a 36% premium on closing price before the offer was announced. Dominion was trading at $17.25 on the TSX Wednesday, up 2.6%.
“It’s possible that this proposal could act as a potential Northwest Territories consolidation or other transactions,’’ said Scotiabank analyst Tanya Jakusconek in a recent report.
Jakusconek is speculating that
Rio Tinto PLC (
NYSE: RIO,
Forum) could be a logical bidder as it has expressed a desire to remain in the diamond industry
Media reports say
Stornoway Diamonds Corp. (
TSX: T.SWY,
Forum) could emerge as a possible suitor.