Goldcorp Inc. agreed to effectively freeze its hostile C$2.75 billion ($2.48 billion) offer for Osisko Mining Corp. pending the outcome of a lawsuit filed in Quebec by the other gold producer.
A trial will be held from March 3 to March 5 at the Quebec Superior Court, Montreal-based Osisko said yesterday in a statement. Vancouver-based Goldcorp won’t acquire any Osisko shares tendered to its bid before a judgment, it said in a separate statement. Goldcorp also extended the deadline of the offer to March 10 from Feb. 19 previously.
Osisko is seeking to block the takeover and says Goldcorp misused confidential data in making its cash-and-stock bid. Goldcorp, the world’s second-largest gold producer by market value, denies the allegations.
The two companies have held talks about a combination at various times since 2008 and signed confidentiality pacts in 2008 and 2012, according to separate filings from Goldcorp and Osisko.
On Jan. 13, Goldcorp announced an unsolicited bid of 0.146 of a Goldcorp share plus C$2.26 in cash for each Osisko share. The proposal represents a bid premium of 15 percent based on closing stock prices for the previous trading day. Osisko rejected the bid on Jan. 20 as too low. The company said yesterday it’s pursuing “value-maximizing” alternatives to the Goldcorp bid.
The offer is currently valued at C$6.27, according to data compiled by Bloomberg. Osisko dropped 0.9 percent to C$6.53 at the close in Toronto. Goldcorp fell 1.2 percent to C$27.48.
Osisko’s single gold-producing asset is the Canadian Malartic project 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.