RAPAPORT… Dominion Diamond Corporation has set up a team of directors
to evaluate a potential sale of the company, the miner said in a statement
The committee will work with Dominion’s management team and
advisors to “consider alternatives that could include the sale of the company or
other strategic transactions,” according to the statement. The panel consists of company chairman Jim Gowans (pictured) and fellow board members Trudy Curran, David Smith
and Josef Vejvoda.
The move comes after Dominion dismissed an informal $1.1
billion takeover offer from the Washington Companies last week, claiming Washington
undervalued the business, but saying it was prepared to enter discussions with
the suitor. Meanwhile, Reuters reported that the miner had held merger talks
with Stornoway Diamond Corporation, another Canada-based rough producer.
“While the board of directors remains confident in the
company’s long-term strategic plan and the opportunity it provides to enhance
value for all shareholders, we are open to exploring all strategic alternatives
that are in the best interests of the company and its stakeholders,” Gowans
“The board is committed to maximizing shareholder value
through a fair and open process, and we look forward to engaging constructively
with all parties,” he added.