Goldcorp Inc. (G) agreed to effectively freeze its hostile C$2.78 billion ($2.5 billion) offer for Osisko Mining Corp. (OSK) as a judge set a date for a court trial, according to a statement from the target.
The trial will be held from March 3 to March 5 at the Quebec Superior Court, Montreal-based Osisko said yesterday in a statement. Goldcorp, based in Vancouver, won’t buy or pay for any Osisko shares sold into the bid before a judgment from the trial, according to the statement.
Osisko started the lawsuit to stop the takeover last month, alleging Goldcorp misused confidential data. Goldcorp, the world’s second-largest gold producer by market value, has denied the allegations. The two parties held talks on and off since 2008 and signed confidentiality pacts in 2008 and 2012, according to separate filings from Goldcorp and Osisko.
Osisko’s claims about a verbal agreement between the two companies to prolong a standstill provision from October 2012 weren’t valid, Goldcorp said yesterday in a separate statement.
Goldcorp announced an unsolicited bid of 0.146 of a Goldcorp share plus C$2.26 in cash per share on Jan. 13. Osisko said Jan. 20 that shareholders should reject the offer because the premium of 15 percent based on closing share prices the previous trading day was too low. Osisko is reviewing other options, it said at the time.
Osisko’s main asset is the Canadian Malartic gold mine in Quebec, which Goldcorp Chief Executive Officer Chuck Jeannes has said would rank among his company’s top mines by free cash flow, output and net asset value.
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