UPDATE 1-Goldcorp extends Osisko bid as court sets hearing

Tue Feb 4, 2014 9:23pm EST

Related Topics

Feb 4 (Reuters) - Osisko Mining Corp said on Tuesday a Quebec court has scheduled a hearing in early March to decide if its complaints against Goldcorp Inc, which has made a C$2.6 billion ($2.35 billion) hostile bid for Osisko, have merit.

As a result, Goldcorp said it had extended its bid to March 10 from a previous expiry of Feb. 19.

Osisko said last week it had sued Goldcorp in an attempt to foil the gold miner's bid, alleging that its suitor misused confidential information. Osisko has already advised its shareholders to reject the bid.

The hearing in the Quebec Superior Court has been set for March 3-5.

Goldcorp said in a statement that it had provided an undertaking to the court to not take up and pay for Osisko shares until the court's judgment was released.

Vancouver-based Goldcorp, the world's second-biggest miner based on market value, again denied Osisko's allegations and said it would vigorously defend its position.

"We are disappointed that Osisko has resorted to baseless legal claims that serve only to delay a proper bid process," Goldcorp President and Chief Executive Chuck Jeannes said.

Jeannes said that a "significant number" of Goldcorp and Osisko shareholders continued to express support for the transaction.

Goldcorp has also undertaken not to challenge Osisko's shareholder rights, or "poison pill", plan until March 6, Osisko said.

Lawsuits are a fairly common defensive measure used by companies facing hostile bids.

FILED UNDER:
A couple walks along the rough surf during sunset at Oahu's North Shore, December 26, 2013. REUTERS/Kevin Lamarque

Find your dream retirement town

Florida? Hawaii? Reuters has teamed up with Zillow to give you the power to customize a list of your best places to retire.  Video | Full Article