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Osisko reminds shareholders that Goldcorp cannot take up shares

Osisko reminds shareholders that Goldcorp cannot take up shares

Photo by Reuters

21st March 2014

By: Henry Lazenby

Creamer Media Deputy Editor: North America

  

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TORONTO (miningweekly.com) – Gold producer Osisko Mining on Friday afternoon reminded its shareholders that under the lawsuit settlement agreement with suitor Goldcorp, Goldcorp is forbidden from taking up and paying for any Osisko shares deposited to its hostile takeover bid before April 15.

Mere hours before its C$2.94-billion hostile takeover offer for Osisko was scheduled to expire, suitor Goldcorp extended the offer to 5:00 EDT on April 4.

Earlier this month, Osisko settled a lawsuit against Goldcorp, which had agreed not to take up and pay for shares deposited to its hostile takeover bid before April 15. In return, Osisko agreed to waive the application of its shareholder rights plan before April 14, to provide Goldcorp access to due diligence materials and to terminate its court proceeding against Goldcorp.

Osisko had rejected the takeover bid several times since January, and had launched a legal challenge to Goldcorp's bid, accusing the company of breaking a confidentiality agreement and failing to honour a verbal agreement to extend an expired standstill agreement.

Osisko underlined that it was continuing to manage a “robust” process to aggressively pursue a range of value maximising alternatives that were in the best interests of the company. The company said that shareholders should expect several more offer extensions and other communications regarding waiving more conditions of the offer from Goldcorp.

Under the terms of the offer, Osisko shareholders are entitled to receive 0.146 of a Goldcorp common share and $2.26 in cash for each Osisko common share tendered.

The TSX-listed stock of Osisko was down by almost a per cent on Friday at C$7.52, and Goldcorp shares closed down C$0.10 at C$29.86 apiece.

Edited by Creamer Media Reporter

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