No retreat for Goldcorp: raises hostile Osisko bid to $3.6bn
Defeating market speculation Vancouver-based Goldcorp (TSX:G)(NYSE:GG) announced Thursday it is sweetening its hostile bid for Osisko Mining Corp. (TSX:OSK) to $7.65 per share or $3.6 billion, trumping a friendly offer by Yamana Gold Inc (TSX:YRI).
Goldcorp raised its hostile offer to Cdn$7.65 per share from about Cdn$6.30. The miner, at $22.5 billion the world's second most valuable gold miner after Barrick Gold, is seeking to take control of Osisko's low-cost Canadian Malartic gold mine in Quebec.
Last week Osisko unveiled a complex "white knight" bid by Canadian miner Yamana Gold for 50 percent of its assets, valuing Osisko at about Cdn$3.3 billion, or Cdn$7.60 per share.
Goldcorp's improved offer comes two days after Osisko Chief Executive, Sean Roosen, said it would be tough for the Vancouver gold miner to better Yamana's offer, which agreed to buy 50% of Osisko’s assets. The transaction valued Montreal-based Osisko at Cdn$7.60 per share.
“Goldcorp’s increased offer represents straightforward and superior value to Osisko shareholders,” said chief executive officer Chuck Jeannes. He added it also ensures “accretion on key per-share metrics for Goldcorp shareholders.”
Panoramic courtesy of McGill University