Tell Us More

Share a bit more information with us
to finalize your Free Quote request.

You are looking for information regarding:

2 to 10+ carat
Round Diamond
Country
United States Afghanistan Aland Islands Albania Algeria American Samoa Andorra Angola Anguilla Antarctica Antigua and Barbuda Argentina Armenia Aruba Australia Austria Azerbaijan Bahamas Bahrain Bangladesh Barbados Belarus Belgium Belize Benin Bermuda Bhutan Bolivia, Plurinational State of Bonaire, Sint Eustatius and Saba Bosnia and Herzegovina Botswana Bouvet Island Brazil British Indian Ocean Territory Brunei Darussalam Bulgaria Burkina Faso Burundi Cambodia Cameroon Canada Cape Verde Cayman Islands Central African Republic Chad Chile China Chinese Taipei Christmas Island Cocos (Keeling) Islands Colombia Comoros Congo Congo, the Democratic Republic of the Cook Islands Costa Rica Cote d'Ivoire Croatia Cuba Curaçao Cyprus Czech Republic Denmark Djibouti Dominica Dominican Republic East Timor Ecuador Egypt El Salvador Equatorial Guinea Eritrea Estonia Ethiopia Falkland Islands (Malvinas) Faroe Islands Fiji Finland France French Guiana French Polynesia French Southern Territories Gabon Gambia Georgia Germany Ghana Gibraltar Greece Greenland Grenada Guadeloupe Guam Guatemala Guernsey Guinea Guinea-Bissau Guyana Haiti Heard Island and McDonald Islands Holy See (Vatican City State) Honduras Hong Kong Hungary Iceland India Indonesia Iran Iran, Islamic Republic of Iraq Ireland Isle of Man Israel Italy Jamaica Japan Jersey Jordan Kazakhstan Kenya Kiribati Korea Korea, Democratic People's Republic of Korea, Republic of Korea (South) Kuwait Kyrgyzstan Lao People's Democratic Republic Laos Latvia Lebanon Lesotho Liberia Libyan Arab Jamahiriya Liechtenstein Lithuania Luxembourg Macao Macedonia, the former Yugoslav Republic of Madagascar Malawi Malaysia Maldives Mali Malta Marshall Islands Martinique Mauritania Mauritius Mayotte Mexico Moldova, Republic of Monaco Mongolia Montenegro Montserrat Morocco Mozambique Myanmar Namibia Nauru Nepal Netherlands Netherlands Antilles New Caledonia New Zealand Nicaragua Niger Nigeria Niue Norfolk Island Northern Mariana Islands Norway Oman Pakistan Palestinian Territory, Occupied Panama Papua New Guinea Paraguay Peru Philippines Pitcairn Poland Portugal Puerto Rico Qatar Republic of China Reunion Romania Russian Federation Rwanda Saint Barthélemy Saint Helena, Ascension and Tristan da Cunha Saint Kitts and Nevis Saint Lucia Saint Martin (French part) Saint Pierre and Miquelon Saint Vincent and the Grenadines Samoa San Marino Sao Tome and Principe Saudi Arabia Senegal Serbia Serbia and Montenegro Seychelles Sierra Leone Singapore Sint Maarten (Dutch part) Slovakia Slovenia Solomon Islands Somalia South Africa South Georgia and the South Sandwich Islands South Sudan Spain Sri Lanka Sudan Suriname Svalbard and Jan Mayen Swaziland Sweden Switzerland Syrian Arab Republic Taiwan Tajikistan Tanzania, United Republic of Thailand Timor-Leste Togo Tokelau Tonga Trinidad and Tobago Tunisia Turkey Turkmenistan Turks and Caicos Islands Tuvalu Uganda Ukraine United Arab Emirates United Kingdom United States Minor Outlying Islands Uruguay Uzbekistan Vanuatu Venezuela, Bolivarian Republic of Vietnam Virgin Islands, British Wallis and Futuna Western Sahara Yemen Zambia Zimbabwe

Oct. 2000

The anticipated takeover of Ashton and its 40% stake in the Argyle diamond mines heated up in September as De Beers and Rio Tinto put down bids and Ashton rejected the former’s $522 million offer.

The rapidly developing takeover saga has the two mining giants in a face-off as Rio Tinto tries to secure its stake in the Argyle diamonds mine, of which it currently owns 60%. De Beers put on the table an offer of $1.62 per share for the remaining 40% of Ashton. The offer, countered by a higher bid of $1.90 per share—about $612 million—by Rio Tinto, was formally rejected as insufficient. The company urged shareholders to take no action on De Beers’ offer, advising them to wait for a higher offer from De Beers in light of Rio Tinto’s counter.

Analysts predict that De Beers will, indeed, up the ante.

According to Ashton, a report values the diamond producer at as much as $870 million, or $2.70 per share. Just like the diamond industry at large, De Beers seems poised to take its low bid and haggle upward.

Ashton is touting its well established reputation as a miner of affordable diamonds as reason for demanding a higher price. The global market for both Ashton’s lower priced diamonds and its signature pink diamonds are both very strong right now.

Along with its higher offer for the 40% of Ashton that it does not own, Rio Tinto has also claimed a legal technicality to try to prevent De Beers from taking over Argyle. A clause in the agreement between Rio Tinto and Ashton allows that diamonds mined at Argyle are to be channeled through Argyle’s independent sales organization. Ashton, however, insists that existing marketing arrangements can be cancelled with 12 months notice and De Beers’ offer is contingent upon the ability to terminate that agreement.

Until 1996, De Beers sold a majority of Argyle stones, but lost control of the channel in 1996. As questions arise surrounding the future of De Beers’ control of sales of Russian ALROSA diamonds, a takeover of Argyle would provide the world’s largest diamond miner more geographic expansion, allowing it also keep a hand in the Russian diamond industry as ALROSA has formed a joint venture with Ashton to explore for diamonds in Russia’s Rarelia state.

“De Beers has recognized the importance of Ashton to is marketing strategy, but has made a bid that does not reflect the true value of Ashton,” Ashton’s Chief Executive Doug Bailey said to the Australian Stock Exchange.

Ashton predicts that net profits will double in 2000. It is already the world’s largest diamond mine, producing 29.7 million carats last year. It is also one of the few that does not sell diamonds through De Beers’ global diamond trading channels. The Australian Competition and Consumer Commission will not take sides in the takeover bids.

Related Articles

Royal jewelry from Princess Margaret up for auction
Blog Archive

Royal jewelry from Princess Margaret up for auction

The eternal diamond versus lab-grown
Blog Archive

The eternal diamond versus lab-grown

White gold favorite for women buying jewelry
Blog Archive

White gold favorite for women buying jewelry