Diamond Circle Capital Rejects Takeover Bid, Proposes Liquidation

(IDEX Online News) – The board of Diamond Circle Capital is recommending shareholders to reject a takeover bid that greatly undervalues their shares and diamond inventory of the fund.

DCC's board said it views the $3.50 per share offer by Abdallah Chatila a hostile takeover attempt. After months of trading at $4.20 on the London Stock Exchange, the share price bobbed up to $4.33.

The fund holds an inventory of high value diamonds worth an estimated $7.25 per share.

The board believes that if it liquidated its portfolio of diamonds, it would be possible to make a greater return to shareholders and therefore recommends rejecting the offer.

The board is not viewing this as a theoretic step, suggesting to shareholders that it sells its portfolio of diamonds and distribute the income.