Billionaire makes bid for Dominion Diamonds

Dominion Diamond Corp. March 19 confirmed that it has received an unsolicited US$1.1 billion buyout bid from Washington Corporations, a group of companies owned by billionaire Dennis Washington.

Dominion said the preliminary expression of interest submitted by Washington is subject to, among other things, extensive due diligence, negotiation of satisfactory agreements and regulatory approvals, and is contingent on entering into discussions with Dominion on aggressive and off market terms and conditions.

Dominion, which owns a majority interest in the Ekati diamond mine and a 40 percent interest in the Diavik diamond mine, considers the Washington offer to be opportunistic.

Despite this, as well as concerns over Washington's experience and credibility in the diamond sector, Dominion said it is open to meeting with (and a better offer from) Washington, but only under terms that protect the diamond company and its shareholders.

"While we believe that your proposal does not recognize the full value of the company, we are, and have been, prepared to work constructively with you and allow you to conduct the due diligence that you have requested, on standard and market customary terms that protect the company and its stakeholders. It is unfortunate and surprising that you have refused to so do," Dominion wrote in a March 19 letter to Washington Corp. President Larry Siskins.

Despite this strong stance, Dominion said it remains open to holding discussions with Washington Corp. to see if they can come together on a proposal that is acceptable to both parties.

-SHANE LASLEY