Canadian diamond miner Dominion Diamond Corp (DDC.TO) (DDC.N), which is being pursued by Washington Cos and Stornoway Diamond Corp (SWY.TO), said it would explore strategic alternatives, including a sale.
U.S.-listed shares of Dominion, which has a market cap of C$1.41 billion ($1.06 billion), were up 7.3 percent at $13.70 in premarket trading on Monday. Dominion’s largest shareholder, M&G Investments, last week asked the company to run a formal sales process and open its books to interested parties.
Washington Cos, a group of privately held North American mining, industrial and transportation businesses founded by billionaire Dennis Washington, revealed its $1.1 billion unsolicited bid in March.
Dominion, the world’s third-largest diamond producer by value, broke off talks with the Washington Cos, calling the terms as unusual and unacceptable. However, the miner said later that it was open to holding discussions with the Washington Cos.
Fellow Canadian diamond miner Stornoway Diamond Corp (SWY.TO) last week entered into talks with Dominion about a potential merger.
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