Tags: Goldcorp | mines | Osisko | Yamana

Goldcorp to Exit Bidding War for Osisko After White Knight Deal

Monday, 21 Apr 2014 01:27 PM

Goldcorp Inc. is walking away from its C$3.2 billion ($2.9 billion) hostile bid for Osisko Mining Corp., electing not to improve its offer a second time, after Canadian rivals Yamana Gold Inc. and Agnico Eagle Mines Ltd. reached a friendly takeover agreement last week.

Goldcorp, which was seeking control of Osisko’s Canadian Malartic gold mine in Quebec, won’t amend its cash-and-share offer for Osisko that’s scheduled to expire tomorrow, the company said in a statement today.

“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,” Goldcorp Chief Executive Officer Chuck Jeannes said in the statement. “We move forward with an outstanding portfolio of mines and projects.”

Goldcorp, the world’s second-largest gold producer, sparked a bidding war with its Jan. 13 offer, which Osisko rejected as too low. Prior to that point, the companies had held talks on and off for five years, and signed confidentiality agreements in 2008 and 2012.

Osisko ran a search for alternatives to Goldcorp’s offer and announced April 2 that Yamana had agreed to buy 50 percent of Osisko’s assets. That transaction also included financing deals with two Canadian pension funds. Goldcorp responded a week later by raising its own bid, after which Agnico joined Yamana in a friendly transaction to buy the whole of Osisko.

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Goldcorp Inc. is walking away from its C$3.2 billion ($2.9 billion) hostile bid for Osisko Mining Corp., electing not to improve its offer a second time, after Canadian rivals Yamana Gold Inc. and Agnico Eagle Mines Ltd. reached a friendly takeover agreement.
Goldcorp, mines, Osisko, Yamana
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2014-27-21
Monday, 21 Apr 2014 01:27 PM
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