Goldcorp says ‘significant number’ of Osisko investors back hostile bid – by Bertrand Marotte (Globe and Mail – January 30, 2014)

The Globe and Mail is Canada’s national newspaper with the second largest broadsheet circulation in the country. It has enormous influence on Canada’s political and business elite.

MONTREAL — Goldcorp Inc. says a “significant number” of Osisko Mining Corp. shareholders support its $2.6-billion hostile offer to take over Osisko and that the targeted company appears to have nothing to offer investors as an alternative.

Vancouver-based Goldcorp made the statements in a news release Thursday responding to Montreal-based Osisko’s launch of legal action in Quebec Superior Court on Wednesday to block the bid.

Osisko also alleges that Goldcorp misused confidential information it got in on-and-off merger talks going back more than five years.

“Goldcorp’s offer reflects the current market environment for gold and gold equities and provides a strong premium based on any reasonable valuation metric,” Goldcorp president and chief executive officer Chuck Jeannes said.

“Osisko has communicated its intention to explore value-maximizing alternatives but without new information their only strategy appears to be to wait and hope for an improved valuation.”

Goldcorp’s CEO also says the meetings with “a significant number” of Osisko shareholders indicate there is “strong support for this business combination.”

Goldcorp is offering a 15 per cent premium based on the closing prices of Osisko and Goldcorp on the Toronto Stock Exchange on Jan. 10, a premium that Osisko says is considerably lower than those in similar mining transactions.

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