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Vancouver-based Goldcorp won’t be throwing in the towel on its bid for Quebec gold miner Osisko Mining just yet.
Vancouver-based Goldcorp (TSX:G
Osisko responded to Goldcorp’s $2.6-billion hostile bid by calling the 15-percent premium “opportunistic” and “very low,” encouraging its shareholders to reject the bid. As Gold Investing News reported on the heels of the original offer in January, Goldcorp’s bid for Osisko was not the first in the company’s history.
Furthermore, on January 29, Osisko announced that it had embarked on a path of legal proceedings against Goldcorp. The Montreal-based firm alleges that Goldcorp “misused confidential information” provided when the companies were in friendlier discussions.
On February 4, the Quebec Superior Court approved Osisko’s application to sue Goldcorp; the hearing will take place from March 3 to 5.
In the wake of the lawsuit, Goldcorp released a statement refuting Osisko’s claims. The gold producer has denied the validity of the statements made and has extended its hostile offer for Osisko until March 10. Goldcorp maintains that it will not pay for any Osisko shares until the Quebec court rules on the allegations.
“We are disappointed that Osisko has resorted to baseless legal claims that serve only to delay a proper bid process and distract Osisko shareholders from the compelling value that Goldcorp’s Offer represents,” Goldcorp CEO Chuck Jeannes said in the press release.
The Globe and Mail writes that the three-week extension of the bid will give Osisko some extra time to “find another option” to Goldcorp’s stock and cash offer of $5.95 per share. However, Osisko could have a hard time finding another company to top Goldcorp’s bid.
Osisko is currently trading at $6.53, above the Goldcorp price.
Securities Disclosure: I, Vivien Diniz, hold no investment interest in any of the companies mentioned.
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