Friday, October 24th5.7°C
23711
22501

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




Recent Trending




Today's Market
S&P TSX14536.49+49.66
S&P CDNX804.69-3.91
DJIA16766.2288.32
Nasdaq4471.803+19.011
S&P 5001959.61+8.79
CDN Dollar0.8905+0.0001
Gold1231.20+2.10
Oil80.73-1.02
Lumber335.00+5.40
Natural Gas3.609-0.013

 
Okanagan Companies
Pacific Safety0.105-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.15-0.02
Cantex0.07+0.015
Anavex Life Sciences0.194-0.004
Metalex Ventures0.045+0.005
Russel Metals33.41+0.25
Copper Mountain Mining2.05-0.03
Colorado Resources0.135-0.005
ReliaBrand Inc0.012-0.001
Sunrise Resources Ltd0.05-0.01
Mission Ready Services0.42+0.01

 





FEATURED Property
20596253617 Veranda Court
3 bedrooms 3 baths
$335,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


What I learned in China

Photo: ContributedI will never be an expert on China. It is just too big, too complex and too old with layers of history and meaning that would take several lifetimes to unravel. As I said to my hosts...


We can get on together

I was in LA this week. I witnessed such crazy and unusual circumstances as I strolled along Hollywood Blvd and Sunset Blvd. A far cry from sleepy Peachland in the Okanagan! The strange thing was, I f...


Weakening global growth worries

The Big Picture Growth worries persist Worries about weakening global growth and its potential impact on the US economic recovery roiled markets around the globe this week. Europe continues to be the ...

_








Member of BC Press Council


22771