Fall in Botswana Diamonds shares

Botswana Diamonds chairman John Teeling has blamed selling of the company’s stock by speculators for the fall in its share price.

The Botswana Diamonds share price slumped from 7 pence sterling at the beginning of February to 4.25p yesterday.

The company grew out of the takeover of part of African Diamonds by Lucara in a paper-for-paper deal.

Hedge funds bought African Diamonds shares in London at 40p to get Lucara shares at the equivalent of 73 Canadian cents, at a point when that stock was worth 95-120 Canadian cents. As part of the deal, Lucara shareholders received shares in the two companies.