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Dominion Diamond Corp
Symbol DDC
Shares Issued 80,574,557
Close 2017-07-18 C$ 17.81
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Globe says BMO's Sterck trims Dominion's share target

2017-07-19 09:10 ET - In the News

The Globe and Mail reports in its Wednesday, July 19, edition that after Dominion Diamond agreed to be bought by Washington Cos. for $1.2-billion (U.S.), BMO Nesbitt Burns analyst Edward Sterck revised his price target to $18 a share from $20. The Globe's Gillian Livingston writes that Mr. Sterck also downgraded Dominion to "market perform" from "outperform." He says in a note: "We recognise that there is still a possibility that another bidder could emerge with a higher offer, with Rio Tinto being the most likely contender in our view (albeit one we would put a relatively low probability on). We note that an offer from Rio Tinto may not have to be that much higher to be considered superior and that Washington may not wish to get dragged into a bidding war. We can see good logic for Rio Tinto to consolidate its ownership of Diavik and Ekati, especially given that management has expressed that it finds the diamond industry attractive and given the exploration potential of the two licence areas. However, we also note that with Rio Tinto having just exited a period of asset shedding, making a first acquisition in diamonds versus copper, for example, may be considered optically challenging for investors."

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