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Investing News Network Daily quotes Aaron Atkinson in an article discussing the update regarding WashCorps $1.1 Billion Takeover bid for Dominion Diamond

Fasken
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“Is a Dominion Diamond Takeover Still in the Cards?” by Charlotte McLeod, Investing News Network Daily.

Investing News Network Daily quotes Toronto lawyer Aaron Atkinson in an article discussing the update regarding WashCorps $1.1 Billion Takeover bid for Dominion Diamond.

 

According to Aaron Atkinson, an M&A partner at Fasken Martineau, that uncertainty is not unusual. “Dominion Diamond is speaking to potential suitors,” he said, “[and] if someone comes in with a proposal that’s attractive … they’ll need to choose whether they want to continue with the status quo.” He added, “it could be a joint venture, it could be a substantial equity investment, it could be any number of things.”

 

“Those two legislative changes, really what they do is put a lot more power into the hands of the target board,” Atkinson noted. “there’s a huge timing advantage to getting the support of the target board, because … all of a sudden if you’ve got a bid out there you could easily be trumped with a competing bid.” He added, “there’s not as much of a first-mover advantage that there might have been.” Launching a hostile takeover also means ceding the right to do due diligence.

 

“The question is: do they want to play in that construct, or do they think they have a better shot going outside the auction process and trying to short circuit it a little bit?” Atkinson explained. WashCorps appears to have decided to take the first option.

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