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Goldcorp’s offer ‘very low’ – Osisko

Goldcorp’s offer ‘very low’ – Osisko

Photo by Bloomberg

15th January 2014

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

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TORONTO (miningweekly.com) – Quebec-based gold miner Osisko on Wednesday said that it had received the C$2.6-billion takeover offer by gold major Goldcorp; however, it noted that the 15% premium to Osisko’s unaffected share price implied by the offer was “very low” and “price opportunistic”.

The Montreal-based miner’s board said it remained committed to delivering superior value for shareholders and all stakeholders and would continue to pursue all initiatives to that end.

The board had formed a special independent committee, including five independent members, and had appointed Stikeman Elliott LLP as its legal adviser to evaluate the proposal.

BMO Capital Markets and Maxit Capital were acting as financial advisers to the corporation. Canadian legal counsel to the corporation is Bennett Jones LLP and US counsel is Skadden, Arps, Slate, Meagher & Flom LLP.

Osisko reminded shareholders to defer taking any action in respect of the offer until the board had made its recommendation as to the merits of the offer.

Should the offer succeed, Goldcorp would gain control of Osisko's Canadian Malartic gold mine, in Quebec. Goldcorp on Tuesday in regulatory filing revealed that it chose to proceed with an unsolicited offer after a long series of thwarted attempts to engage Osisko in talks about a possible deal.

Edited by Creamer Media Reporter

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