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

(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.

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