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Osisko asks shareholders for patience, says Goldcorp bid blocked until April 15

File photo from an Osisko operation.

Osisko Minining

Osisko Mining Corp. is urging its shareholders to be patient as it continues to seek an alternative to Goldcorp Inc.'s hostile takeover offer.

Goldcorp said on Monday it is extending its offer to acquire all of Osisko's shares to March 21, but Osisko countered with a news release reminding its shareholders that a settlement agreement between the two companies stipulates that Goldcorp cannot take up and pay for any Osisko shares deposited to its bid before April 15.

Montreal-based Osisko said it is "continuing to manage a robust process to aggressively pursue a range of value maximizing alternatives that are in the best interests of Osisko, the Osisko shareholders and other stakeholders."

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And it reiterated the fact that its board has unanimously recommended shareholders reject Goldcorp's offer because it does not fairly compensate them for the "strategic value of Osisko's world-class asset base, the significant upside potential of Osisko's Canadian Malartic Mine, or the increased risk inherent in Goldcorp common shares."

Goldcorp is offering Osisko shareholders 0.146 of a Goldcorp common share and $2.26 in cash for each Osisko common share.

Last week, Osisko dropped its lawsuit against Goldcorp in an agreement that gives Osisko more time to come up with an alternative to Vancouver-based Goldcorp's $2.6-billion offer.

Under terms of the deal, Osisko agreed to waive its shareholder-rights plan and provide Goldcorp with access to due diligence data.

Osisko alleged in the suit that Goldcorp misused confidential information it got in an agreement between the two companies to pursue merger talks.

Osisko's key asset is the low-cost Canadian Malartic gold mine in northwest Quebec, one of the biggest precious-metal mines in Canada, with 10.1 million ounces of gold reserves.

Osisko shares have been trading well above the implied value of Goldcorp's offer since the latter's bid was announced Jan. 14.

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About the Author
Quebec Business Correspondent

Bertrand has been covering Quebec business and finance since 2000. Before joining The Globe and Mail in 2000, he was the Toronto-based national business correspondent for Southam News. He has a B.A. from McGill University and a Bachelor of Applied Arts from Ryerson. More

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