Osisko Mining Corp., subject of a hostile takeover offer from Goldcorp Inc., said it started legal action in the Quebec Superior Court seeking to stop the bid, alleging the larger miner misused confidential information.
Goldcorp acted “in a manner not permitted by the confidentiality agreement between the parties,” Osisko said in a statement today. “Osisko also alleges that Goldcorp acted in bad faith and in a manner contrary to applicable law” in actions that it took before making the hostile bid, the Montreal-based company said.
Goldcorp, the world’s second-largest gold producer by market value, said Jan. 13 it would offer to pay Osisko holders 0.146 Goldcorp shares plus C$2.26 in cash per share in a deal worth about C$2.6 billion ($2.3 billion) to gain control of Osisko’s Canadian Malartic mine in Quebec. Osisko recommended that shareholders reject the offer because it’s too low.
No one at Osisko was immediately available to comment further. Christine Marks, a spokeswoman for Goldcorp, declined to comment until the company has obtained and reviewed Osisko’s statement of claim.
The two companies held talks on and off since 2008 and signed confidentiality pacts in 2008 and 2012, according to separate filings from Goldcorp and Osisko. The agreement “in the summer of 2012” had a two-year term and imposed a so-called standstill of one year, Osisko said today.
Osisko is seeking an order “enjoining the hostile bid and further conduct by Goldcorp that Osisko alleges is in breach of the confidentiality agreement,” it said in the statement.