Osisko seeks injunction restraining Goldcorp’s hostile offer
TORONTO (miningweekly.com) – Takeover target Osisko Mining on Wednesday said it had started a legal proceeding in the Quebec Superior Court to restrain rival suitor Goldcorp from proceeding with its hostile takeover bid.
Earlier this month, Goldcorp announced a C$2.6-billion bid to buy out Quebec-based Osisko; however, Osisko has called the 15% premium being offered by Goldcorp "very low”.
Under terms of the unsolicited offer, TSX- and NYSE-listed Goldcorp offered Osisko shareholders 0.146 of a Goldcorp common share and C$2.26 in cash for each Osisko common share tendered. The offer was scheduled to end on February 19.
The scene is now set for an acrimonious takeover battle that could last months, if not years.
In the Quebec proceeding, Osisko alleged that, in making its hostile takeover bid for Osisko, Goldcorp misused confidential information and otherwise acted in a manner not permitted by the confidentiality agreement between the parties.
Osisko also alleged that Goldcorp acted in bad faith and in a manner contrary to applicable law, in certain of its actions, before launching its hostile bid.
As a result, Osisko is seeking an order enjoining the hostile bid and further conduct by Goldcorp that Osisko might allege is in breach of the confidentiality agreement.
Osisko reaffirmed that it believed the bid was opportunistic and financially inadequate and threatened to deprive Osisko's shareholders of adequate payment for their shares without providing the company's board with a sufficient opportunity to properly convey the value of Osisko's assets or to develop, review and evaluate all value-enhancing alternatives.
Osisko’s TSX-listed shares on Wednesday climbed 4.24% to C$6.89, 10% higher than when the deal was first announced two weeks ago.
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