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LUC - Lucara Diamond News Story

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Last Trade - 07/05/21

Sector
Basic Materials
Size
Small Cap
Market Cap £194.5m
Enterprise Value £214.1m
Revenue £89.7m
Position in Universe 523rd / 2702

UPDATE 1-Dominion Diamond should open books to potential suitors -top shareholder

Tue 21st March, 2017 7:47pm
(Adds comment from Washington Cos president, share reaction, 
context) 
    By Nicole Mordant 
    March 21 (Reuters) - Dominion Diamond  DDC.TO   DDC.N , 
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. 
 urn:newsml:reuters.com:*:nL2N1GW0N3 
    In response, Dominion said its board had considered 
Washington's proposal, but that the terms of the proposed talks 
were unacceptable.  urn:newsml:reuters.com:*:nBw3wdBHqa 
    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. 
    Washington said on Sunday that the talks with Dominion had 
ended. On Tuesday, Larry Simkins, Washington's president, told 
Reuters it was up to Dominion and its shareholders to make the 
next move. 
    "We're absolutely waiting for the board of directors and the 
shareholders on determining what our next steps are," Simkins 
said in an interview.  
    He declined to say whether Washington may take a formal bid 
directly to shareholders. Washington currently owns no shares in 
Dominion, Simkins said.  
    M&G's Horvat said Dominion should allow Washington and 
others to do due diligence on the miner under proper terms and 
then "go ahead with the best offer." He said he expected this 
would happen. 
    "I think the board is going to do the right thing. They have 
good advisors, they are smart people," he said. 
    Analysts said on Monday that there were several "logical" 
potential suitors for Dominion including global mining giant Rio 
Tinto  RIO.L   RIO.AX  and Anglo American-owned  AAL.L  diamond 
giant De Beers. Anglo and Rio declined to comment late on 
Monday. 
    Reuters reported on Monday that smaller Canadian diamond 
miner Stornoway Diamond Corp  SWY.TO  had held merger talks with 
Dominion in recent months  urn:newsml:reuters.com:*:nL2N1GX1X2 
 
 (Reporting by Nicole Mordant in Vancouver; Editing by Denny 
Thomas and Leslie Adler) 
 ((nicole.mordant@thomsonreuters.com; +1-778-374-3854; Reuters 
Messaging: nicole.mordant.thomsonreuters.com@reuters.net)) 
 
Keywords: DOMINION DIAMOND M&A/SHAREHOLDER
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