Goldcorp Inc.’s hostile bid for smaller rival Osisko Mining Corp. hit a snag on Tuesday after a Quebec court said it would hear complaints against the larger gold company early in March.
Osisko has sued Goldcorp for allegedly misusing confidential information that Osisko provided when the gold mining companies were contemplating a friendly transaction.
At a hearing in Montreal on Tuesday, the Quebec Superior Court set a trial date for March 3 to determine the merits of Osisko’s lawsuit.
That will temporarily set back Goldcorp’s $2.6-billion stock and cash offer, which is due to expire Feb. 19.
For five years, Vancouver-based Goldcorp has been trying to buy Osisko to gain control of the company’s massive gold mine in Quebec called the Canadian Malartic.
The companies first entered into a confidentiality agreement in 2008 after Goldcorp agreed to buy a strategic stake in Osisko to help the smaller company build the Quebec mine.
Since then, the relationship between the miners has deteriorated with the companies publicly accusing each other of acting in bad faith.
Goldcorp took its unsolicited bid directly to shareholders mid-January after Osisko rejected three of the Vancouver miner’s offers to merge.
Osisko, which is based in Montreal, is looking for alternatives to Goldcorp’s bid.
Shares of Osisko are trading at $6.59 per share, above the Goldcorp offer of $5.95 a share, suggesting that investors are expecting a higher bid to emerge.
Goldcorp did not immediately respond to a request for comment.