Toronto: Canada-based diamond miner Dominion Diamond Corp has knocked back a $US1.1B, $13.50-a-share take-over bid from The Washington Companies, a diverse, privately-held Missoula, Montana, US-based group of privately held North American mining, industrial and transportation businesses, Reuters reported.

Dominion has confirmed its board considered Washington’s unsolicited offer, but that the terms of the proposed talks were unusual and unacceptable. They included the ability to see confidential information that could later be used for a proxy fight to take over the company and the ability to veto the board’s choice of a new CEO.

Washington president Lawrence Simkins says its bid offered a substantial premium – a 36% premium to Dominion’s closing stock price on Mar 17 and 54% premium when discussions ended on Mar 15 – and immediate liquidity, and that it remained fully committed to completing the transaction.