Is a Dominion Diamond Takeover Still in the Cards?

(Diamond Investing News) - It’s been just under two months since Montana-based Washington Corporations (WashCorps) made a $1.1-billion takeover bid for Dominion Diamond (TSX:DDC,NYSE:DDC), and the initial excitement has died down substantially. Dominion, which made headlines — and enjoyed a huge share price rise — after soundly rejecting the offer, is now lying low. While the company initiated a strategic review a few weeks after receiving WashCorps’ proposal, since then it has put out little news. In its most recent update, released May 1, Dominion notes that as part of the strategic review it is now speaking with a number of interested parties, including WashCorps; however, it does not expect to release further news until its board approves a specific transaction. There’s also the possibility that nothing at all will come of the review. In other words, Dominion has options, and will likely take its time making a decision on how to move forward.