Monday, April 27th18.7°C
25936
25546

Osisko says Goldcorp takeover offer is very low, directors will seek better deal

MONTREAL - Osisko Mining Corp. (TSX:OSK) is calling a hostile takeover bid for the company by Goldcorp Inc. (TSX:G) "very low" and opportunistic.

The company said Wednesday its board is committed "to delivering superior value for shareholders and all stakeholders" and will pursue all initiatives to that end.

"Osisko's board of directors noted that the 15 per cent premium to Osisko's unaffected share price implied by Goldcorp's offer is very low and the price opportunistic in light of Osisko's proven high quality asset base," the company said in a statement.

Osisko urged shareholders to hold off from accepting the $2.6-billion bid until the board, which has formed a special committee including five independent members to review the offer, makes a recommendation on the proposal.

Osisko shares have traded well above the $5.95 implied value of the Goldcorp offer since the stock-and-cash proposal was first announced on Monday.

Analysts have suggested that Goldcorp will have to raise its offer if it wants to close the deal.

Osisko shares closed up two cents at $6.25 on the Toronto Stock Exchange on Wednesday, while Goldcorp was down six cents at $24.28.

Osisko's main asset is the Canadian Malartic gold mine in northern Quebec where it has been ramping up operations since its first commercial production in May 2011.

In addition, Osisko owns the Hammond Reef gold project near Thunder Bay, Ont., and land holdings near Kirkland Lake, Ont.

Goldcorp was once one of the largest shareholders in Osisko, but sold its 10.1 per cent stake in the company in 2011 for $13.75 per share for a total of about $530 million.

Since then, the big gold producer said it had been in regular discussions with Osisko until late last year.

The acquisition of Osisko would give Goldcorp a key asset in Quebec where the company is building the Eleonore gold mine.

Goldcorp chief executive Chuck Jeannes has said Canadian Malartic would rank among his companies' best operations if the takeover is successful.

The Canadian Press


Read more Business News

24947


Recent Trending




Today's Market
S&P TSX15344.08-64.25
S&P CDNX690.10-7.60
DJIA18037.97-42.17
Nasdaq5060.25-31.84
S&P 5002108.92-8.77
CDN Dollar0.8265-0.0005
Gold1199.90-3.40
Oil56.57-0.42
Lumber255.00-1.20
Natural Gas2.48-0.01

 
Okanagan Companies
Pacific Safety0.08-0.04
Knighthawk0.010.00
QHR Technologies Inc1.40+0.02
Cantex0.035+0.005
Anavex Life Sciences0.395-0.035
Metalex Ventures0.095+0.000
Russel Metals27.05-0.11
Copper Mountain Mining1.25+0.10
Colorado Resources0.10+0.01
ReliaBrand Inc0.004-0.001
Sunrise Resources Ltd0.04+0.01
Mission Ready Services0.19-0.01
Decisive Dividend Corporation1.80+0.10

 



25866

FEATURED Property
22673451524 Rose Meadow Road
5 bedrooms 3 baths
$479,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Buy versus rent

Consider the top five reasons to buy versus rent: #5 Experience Freedom: Home ownership will free you from the ties that bind you to a landlord...no longer will you be dependent on someone else&rsq...


What's your score?

There was a time when we would sit down with nothing more than a sheet of paper and a sharp pencil to do the math. Totalling our expenses and subtracting our revenue, the amount left over was the answ...


Do you dare to dream?

Photo: Thinkstock.comI have never been able to understand why some people can only see as far ahead as the end of the current day. Instead of aiming for long term goals, they just wallow in their ever...

_





25482


Member of BC Press Council


24843