Description: Harry Winston Diamond Corp. (HW)’s $1 billion sale of a luxury unit to Swatch Group AG (UHR) provides the cash to invest more in diamond mining, a business that last year was more than twice as profitable as jewelry.
Date: Jan 15, 2013
Questions for Discussions:
- Explain the logic of selling the retail division to Swatch in order to finance the development of more mining.
- How else could the firm have financed more mining?
- Do you think the decision was a good one?
- Would you be an investor in either firm today?
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