Goldcorp Inc abandoning hostile bid for Osisko – by Peter Koven (National Post – April 22, 2014)

The National Post is Canada’s second largest national paper.

Goldcorp Inc. has elected not to raise its hostile offer for Osisko Mining Corp., leaving the company to be acquired by Yamana Gold Inc. and Agnico Eagle Mines Ltd.

Vancouver-based Goldcorp announced on Monday afternoon that it will let its $3.6-billion hostile bid for Osisko expire on April 22 instead of raising it.

Goldcorp vowed all along that it would not overpay for Osisko, and most investors suspected it would not raise its offer for a second time. Goldcorp launched its first bid in January and increased it earlier this month.

“We stated from the beginning of this process that we would remain disciplined with respect to our offer to acquire Osisko, and our decision not to amend the offer is consistent with that commitment,” chief executive Chuck Jeannes said in a statement.

“We move forward with an outstanding portfolio of mines and projects, and our focus will remain on maximizing the value of our investments and generating strong returns for our shareholders.”

Osisko is now almost certain to be acquired by Yamana and Agnico-Eagle for $3.6-billion in cash and stock. The two buyers will each get half of the Montreal miner’s assets, while Osisko’s current management team will take over a new company with $155-million in cash and a 5% royalty on its flagship Canadian Malartic mine in Quebec.

Goldcorp’s decision brings an end to an increasingly bitter takeover battle. Osisko chief executive Sean Roosen badmouthed Goldcorp in the media and accused the company of several nefarious tactics in its bid. Goldcorp, which has been keen to buy Osisko since 2008, claimed Osisko refused to disclose key confidential information over the years.

The Goldcorp bid is viewed as a potential catalyst for more merger and acquisition activity in the gold mining space. That topic is in focus now as Barrick Gold Corp. and Newmont Mining Corp. study a US$34-billion tie-up.

For the original version of this article, click here: http://www.ottawacitizen.com/business/fp/Goldcorp+abandoning+hostile+Osisko/9759897/story.html

 

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