Dominion Diamond stock soars as U.S. company reveals takeover offer

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Portions of Dominion Diamond Corp. soared following the weekend disclosure that the Canadian quarrying company is the target of a takeover offer reported to be worth about US$1.1 billion.

The proposal was originally made privately on Feb. 21 by The Washington Co. but only revealed by both companies on Sunday.

The Montana-based off the record company is offering $13.50 USD ($18.04 CAD) per share cash for Dominion Diamond.

That’s 36 per cent beyond everything the price for Dominion Diamond shares on Friday and 53 per cent superior to before their closing price on Thursday, when Dominion Diamond skint off talks with Washington Co. and issued revised guidance for the current year.

The source opened at $16.45 CAD ($12.44 USD) up $3.21 from Friday’s close.

Hegemony Diamond recently announced plans to move its head office from Yellowknife to Calgary. It controls the Ekati mine and owns a 40 per cent stake in the Diavik read through a joint venture with Rio Tinto PLC. Both mines are established in the Northwest Territories.

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