Wednesday, December 17th0.2°C
24563
24285

Osisko drops lawsuit in takeover battle, Goldcorp offer extended to April 15

MONTREAL - Osisko Mining Corp. (TSX:OSK) said Monday it has settled a lawsuit it filed against Goldcorp Inc. (TSX:G) as part of the Montreal-based company's fight against a hostile takeover by the senior gold miner.

Under the settlement, the offer from Vancouver-based Goldcorp has been extended to April 15, from March 10, while Osisko continues its search for an alternative bid.

Osisko has also agreed to waive its shareholder rights plan by April 14 and provide Goldcorp with access to due diligence materials starting April 1, or earlier if Osisko signs a deal with another bidder.

"Given the robustness of our process to pursue value maximizing alternatives, the extension to April 15, 2014 provides a meaningful extension to the anticipated time to complete this work," Osisko president and chief executive Sean Roosen.

"The April 15, 2014 date also provides certainty of timing for those in the process to complete their work and propose executable arrangements to unlock value for all stakeholders."

Osisko has urged its shareholders to reject the Goldcorp offer and called it inadequate and opportunistic.

Goldcorp said it was pleased the lawsuit, in which Osisko had accused it of breaking a confidentiality agreement and failing to honour a standstill agreement, was over.

"This agreement will avoid the possibility of further delays in the completion of our offer that could have arisen from appeals of the pending litigation and the operation of Osisko's shareholder rights plan," Goldcorp president and chief executive Chuck Jeannes said.

Under terms of the Goldcorp bid, Osisko shareholders would receive 0.146 of a Goldcorp share and $2.26 in cash per Osisko share.

The price of gold and share prices for many gold producers have risen in recent weeks but Osisko shares have traded well above the implied value of the Goldcorp offer since the bid was first announced.

Osisko's shares closed up 45 cents at $7.50 on the Toronto Stock Exchange on Monday after trading for as much as $7.54.

Goldcorp shares closed up 55 cents at $30.32, making the implied value of its offer about $6.69 per share.

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.

The Canadian Press


Read more Business News

24304


Recent Trending




Today's Market
S&P TSX14213.88+352.36
S&P CDNX659.00+16.65
DJIA17356.87288.00
Nasdaq4644.312+96.477
S&P 5002012.89+40.15
CDN Dollar0.8594+0.0007
Gold1199.50+5.20
Oil56.55+0.08
Lumber337.20+3.00
Natural Gas3.706+0.004

 
Okanagan Companies
Pacific Safety0.125+0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.27+0.04
Cantex0.03-0.005
Anavex Life Sciences0.1659-0.0241
Metalex Ventures0.05-0.005
Russel Metals27.18+1.03
Copper Mountain Mining1.54+0.11
Colorado Resources0.105-0.005
ReliaBrand Inc0.0199+0.0065
Sunrise Resources Ltd0.055+0.005
Mission Ready Services0.22+0.02

 
23744


23265

FEATURED Property
2097664949 Monashee Place
3 bedrooms 3 baths
$559,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Managing your sales team

Managing a sales team can be quite a challenge. Harnessing individual personality preferences and getting everyone focused on the same goals, moving at the same pace, and working in collaboration to d...


Working under the table

They say there are only two things that are certain in life: death and taxes. Not exactly an uplifting thought, but true nonetheless. Some people try to avoid paying tax by “working under the ta...


Housing prices to skyrocket?

As most of you know, this column was started with a focus on Okanagan real estate. Over time, more and more columnists started covering the real estate sphere and so it morphed in to a personal colum...

_



24111




Member of BC Press Council


23860