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Osisko says Goldcorp offer ‘opportunistic,’ door open to new bids

A Goldcorp sign is pictured at the Goldcorp annual general meeting in Toronto on May 2, 2013.

Aaron Vincent Elkaim/THE CANADIAN PRESS

Osisko Mining Corp. says Goldcorp Inc.'s hostile $2.6-billion takeover offer is a low-ball bid.

Montreal-based Osisko said on Wednesday that Vancouver-based Goldcorp's proposed takeover is "very low and the price opportunistic in light of Osisko's proven high quality asset base."

Goldcorp – which is after Osisko's giant Canadian Malartic gold mine in Quebec's Abitibi region – announced the offer on Monday and filed its formal bid on Tuesday.

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Goldcorp's offer represents a 15-per-cent premium to Osisko's share price at closing last Friday.

Several analysts have said Goldcorp likely will have to sweeten its offer.

Osisko's share price was up 20 per cent to $6.23 Tuesday on expectations of a higher bid.

"Osisko will continue to review the offer and will communicate with its shareholders as appropriate," the company said Wednesday.

"Osisko's board remains committed to delivering superior value for shareholders and all stakeholders and will continue to pursue all initiatives to that end."

The board has set up a special independent committee that includes five independent directors, Osisko said.

The mining company is asking shareholders to refrain from acting on Goldcorp's offer "until the Board of Directors of the Corporation makes a recommendation as to the merits of the Offer."

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Goldcorp said in its filings on Tuesday that Osisko repeatedly spurned offers to merge and refused to provide key information after the two companies signed a confidentiality agreement in the summer of 2008.

Canadian Malartic contains 10.1 million ounces of gold reserves and started commercial production in April of 2011.

Production at the gold mine – one of Canada's largest – is expected to be 500,000 ounces a year over a 16-year mine life.

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