Wall Street ends in red, March 20-24

U.S. indexes fell as investors questioned U.S. President Donald Trump’s ability to deliver on his promises to boost the economy. The Dow Jones Industrial Average fell 1.5% to 20,596.72, while the broader S&P 500 Index retreated 1.4% to 2,343.98. Both indexes closed their lowest since Feb. 14. The tech-heavy Nasdaq Composite Index lost 1.2% to finish at 5,828.74. Spot gold advanced 1.1%, or US$14.10, to US$1,242.90 per oz. Crude oil futures fell 1.7% to US$47.97 per barrel.

Dominion Diamond topped both the percentage and value change lists, gaining 28%, or US$2.80 per share, to finish at US$12.72, following a hostile takeover offer. On March 19, the Canadian diamond major confirmed it received and rejected a US$1.1 billion proposal from the Washington Companies, a privately held U.S. conglomerate. The bid valued Dominion at US$13.50 per share, a 36% premium to its March 17 closing price. Dominion maintains the offer, received on Feb. 21, would give Washington Co. a “lengthy period of exclusivity” and the ability to overrule the board’s choice of a new chief executive, among other things.

On March 27, Dominion reported that it has formed a special committee to assess its strategic alternatives, including selling the company. The committee includes the board’s chairman Jim Gowans and directors Trudy Curran, David Smith and Josef Vejvoda. Dominion cautions there is no guarantee a transaction will occur. The company has a stake in the large Ekati and Diavik diamond mines in the Northwest Territories.

Intrepid Potash shares jumped nearly 12% to US$1.64, reversing the previous week’s loss. On March 15, Intrepid signed an underwriting agreement with Cantor Fitzgerald to issue 43.5 million shares for $1.1537 apiece, after related discounts and commissions. Intrepid also granted Cantor an option to buy up to 6.5 million additional shares. A day later, Cantor exercised in full its option to buy the additional shares, increasing its total shares purchase to 50 million. The offering closed on March 21. Intrepid plans to use the proceeds to pay in part its debt and for general corporate purposes.

Intrepid also reported that Brian Frantz, senior vice president and chief accounting officer, is leaving to pursue another career opportunity. Effective April 7, Joseph Montoya, who has held various accounting roles since 2014, will take Frantz’s position