Goldcorp, Osisko avoid court battle over hostile bid
The ongoing dispute between Canadian miners Goldcorp (TSX:G) (NYSE:GG) and Osisko (TSX:OSK) will be kept outside courts, as both companies reached a settlement Monday over Osisko’s legal action aimed at blocking the gold giant’s $2.6-billion hostile takeover offer.
The announcement was only hours before Osisko’s court action was set to begin in Quebec Superior Court today.
Under terms of the agreement, Vancouver-based Goldcorp has agreed not to take up and pay for shares deposited to its hostile offer before April 15. Osisko, in turn, committed to waive its shareholder-rights plan and provide Goldcorp with access to due diligence data.
Goldcorp, which is seeking access to access to Osisko’s Malartic mine in Quebec, already has a gold project in the province – Éléonore, set to begin production later this year.
If it goes through, the proposed deal will make Goldcorp, which already is world's largest gold miner by market capitalization, the No. 1 gold producer in the province of Quebec.