Osisko Shareholder Says Goldcorp Hostile Bid Will Succeed
Goldcorp Inc. (G)’s C$2.72 billion ($2.43 billion) hostile bid for Canada’s Osisko Mining Corp. (OSK) has priced in the gold market and will succeed, said the chairman of Sprott Asset Management, an Osisko shareholder.
“The bid has fully priced in current gold prices and will yield Goldcorp tremendous benefit down the road at higher gold prices,” Rick Rule said today in a telephone interview. “It’s a vindication of what the team at Osisko has done.”
Goldcorp, the world’s second-largest gold producer by market value, first made its cash-and-stock bid on Jan. 13 to gain control of Osisko’s Canadian Malartic mine in Quebec. At the time, the cash-and-stock offer valued Osisko as about C$5.95 a share. Sprott Asset Management, a unit of Toronto-based Sprott Inc. (SII), owns 0.6 percent of Osisko, according to data compiled by Bloomberg.
Osisko has the “ability” to see its share price rise to C$8 to C$12 in the next 12 to 18 months based on current gold prices, Chief Executive Officer Sean Roosen told a mining conference organized by TD Securities Inc. on Jan. 28.
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