BC Business
The latest twist in Goldcorp Inc.’s hostile takeover bid for Osisko Mining Corp. of Montreal sees no resolution in sight, with Goldcorp reiterating its original offer following Osisko’s claim that it has found a white knight to ward off the hostile bid. Vancouver-based Goldcorp launched a hostile takeover bid on Jan. 13 offering Osisko shareholders a combination of cash and Goldcorp shares valuing Osisko at $5.95 a share. The bid would expire on Feb. 19. Osisko responded by describing the bid as “very low” and “opportunistic” and urged shareholders to resist Goldcorp’s overtures. Investors apparently sided with Osisko, believing a better offer would be forthcoming; Osisko shares rose to $6.24 immediately following the announcement of the takeover bid. Investors took further cheer when Osisko filed a lawsuit on Jan. 29 alleging that Goldcorp breached a confidentiality agreement. The news sent Osisko shares up to $6.89. When the suit was settled out of court on March 3, Osisko shares continued to climb, closing at $7.50. Goldcorp extended its takeover bid twice, first to March 21, then to April 4—without increasing its original valuation of Osisko shares at $5.95. Osisko shares hit a high daily close at $7.89 on March 13. On April 2 Osisko announced complicated agreements, according to which Yamana Gold Inc. of Toronto would pay $929.6 million in cash and shares for a 50-per-cent stake in all Osisko’s mining and exploration assets, and two pension plans would advance $550 million in cash, partially in credit, and partially in return for future gold revenue. Osisko said the Yamana bid values Osisko at $7.60 a share. Goldcorp responded by reiterating its takeover bid at its original valuation of $5.95 a share, extending its deadline to April 15. TIMELINE: THE UNFOLDING OF THE GOLDCORP/OSISKO DRAMA FRI. JAN. 9: OSISKO SHARE PRICE: $5.17 Jan. 13: Goldcorp announces intention to launch a hostile takeover bid, in cash and shares, valuing Osisko at $5.95. Offer to expire Feb. 19. JAN. 13: OSISKO SHARE PRICE: $6.24 Jan. 15: Osisko responds that the unsolicited bid is “very low” and “opportunistic.” Jan. 29: Osisko launches legal action in Quebec Superior Court, alleging Goldcorp breached a confidentiality agreement prior to the takeover bid, seeking an injunction restraining the hostile bid. JAN. 29: OSISKO SHARE PRICE: $6.89 Jan. 30: Goldcorp responds that “No new information has been presented that would change Goldcorp’s view that its offer is full and fair.” Feb. 18: Goldcorp extends offer to March 10, doesn’t up its original valuation of Osisko at $5.95 a share. FEB. 18: OSISKO SHARE PRICE: $7.02 March 3: Lawsuit is settled out of court: While Goldcorp continues its bid to buy a majority of Osisko shares, it agrees defer taking possession of shares until April 15. Osisko says it hopes to find a better offer. MARCH 3: OSISKO SHARE PRICE: $7.50 March 10: Goldcorp extends offer to March 21. MARCH 13: OSISKO SHARE PRICE: $7.89 March 21: Goldcorp extends offer to April 4. April 2: Osisko announces a complex agreement that would see Yamana Gold Inc. of Toronto pay $929.6 million in cash and shares for a 50-per-cent stake in all Osisko’s mining and exploration assets, while a pair of pension funds would provide $550 million in cash. Osisko says the Yamana agreement values its shares at $7.60. April 3: Goldcorp extends its offer to April 15, remains steadfast in its original valuation of Osisko shares at $5.95. APRIL 3: OSISKO SHARE PRICE: $7.22