Osisko Mining (TSX:OSK) has rejected a $2.6 billion hostile takeover bid launched by Vancouver gold miner Goldcorp Inc. (TSX:G), Osisko announced January 20.
Goldcorp had announced its intention to buy Quebec-based Osisko January 14.
“While Osisko has had several preliminary discussions with Goldcorp over the past five years, those discussions have never led to a credible proposal from Goldcorp,” Osisko said in a January 20 press release.
“Instead, Osisko has been presented with highly conditional and non-binding proposals that offered inadequate premiums, and value propositions which did not warrant further consideration or engagement by Osisko.”
The reasons cited for the rejection of the takeover bid include:
- Osisko feels the Goldcorp offer didn’t recognize the full strategic value of Osisko’s Canadian Malartic gold mine in Quebec – its main asset;
- the timing of the offer was “opportunistic,” said Osisko, occurring before the Malartic mine enters its most productive years;
- the premium being offered is well below those paid in relevant previous transactions;
- Osisko shares consistently trade at prices above the Goldcorp offer; and
- Osisko shareholders would not be adequately compensated for the significant risks involved in Goldcorp shares, including geopolitical risk, development risk and legal risk.
