Canadian pension group considers purchase of Dominion
Last week, reports were released that the Canada Pension Plan Investment Board (CPPIB) was considering a bid for Dominion Diamond Corporation. This prompted Dominion’s share price to rise more than 3 per cent.
According to Reuters, CPPIB is one of more than five parties that have signed agreements with Dominion to access its confidential data. It is unlikely that CPPIB will make an offer on its own; instead, it may give financial support to another corporation with expertise in mining. the sources said in the report.
This advancement follows Dominion’s dismissal of an informal $1.1 billion takeover proposal from the Washington Companies. Subsequently, the producer set up a committee of directors to evaluate a possible sale. Moreover, it was reported that Stornoway Diamond Corporation had held merger talks with Dominion.