The chief executive of Osisko Mining Corp. is offended by Goldcorp Inc.'s unsolicited bid for his one-mine company.
The way Sean Roosen sees it, Osisko will deliver more value to shareholders as a stand-alone company than if the miner combines its massive gold mine in Quebec with Goldcorp's suite of mines in the Americas.
"We think the single-asset company will make you a lot more money than if we blend this into an asset base that we have to worry about Argentina, Guatemala, Dominican Republic and other jurisdictions," Mr. Roosen said at the TD Securities Mining conference in Toronto.
"Right now we wake up in the morning and the only thing you have to worry about is whether you're going to be having poutine in Quebec or whether it is going to be cold in Tremblant," he said.
Osisko has long been a target for its Canadian Malartic mine, which is one of the biggest precious metal mines in Canada with 10.1 million ounces of gold reserves and is considered a low-cost operation.
Goldcorp chief executive Chuck Jeannes has tried to gain control of Canadian Malartic since 2008.
"We've been the No. 1 M&A target in this space many times in the past," Mr. Roosen later told reporters on the sidelines of the conference. "We have practised for this drill an awful lot and we're not about to let any value gap not be recognized."
Montreal-based Osisko is trading at $6.55 a share, above Goldcorp's stock and cash offer of $5.95 per share as Mr. Roosen and his team look for an alternative.
Mr. Roosen, who has been in charge of Osisko since it started developing Canadian Malartic, believes his company should be trading closer to $12 a share when its mine is in full production.
He called Goldcorp's bid "disrespectful" to Osisko's shareholders and said he was "offended" when Goldcorp launched its hostile bid Jan. 13.
"This is a very hostile offer," Mr. Roosen said.
Mr. Roosen and Mr. Jeannes have butted heads over the past five years as Goldcorp tried to negotiate a friendly deal with its smaller rival.
Their relationship deteriorated to the point where Mr. Jeannes called Mr. Roosen to tell him about the unsolicited bid 20 minutes before Goldcorp issued its press release announcing the plans.
The chief executives have not spoken since that day and have ignored each other at mining events.
According to Osisko, Goldcorp's first offer on Nov. 27, 2008, was valued at $1.78 a share when Osisko was trading in a range between $1.60 and $2.
Goldcorp's second offer in April of 2009 was valued at $4.85, when Osisko was trading above $5 a share. Goldcorp's third offer in September, 2009, was valued at $5.89, when Osisko was trading above $7 a share.
It is unclear whether Osisko will be able to attract another bidder with mining companies reducing expenses and putting potential acquisitions on hold because of the lower gold price.
Analysts expect Goldcorp to sweeten its bid.