TORONTO Jan 29 Osisko Mining said on
Wednesday it has sued Goldcorp Inc in an attempt to foil
the gold miner's C$2.6 billion ($2.33 billion) hostile bid,
alleging that its suitor misused confidential information.
The lawsuit, which is a fairly common defensive measure used
by companies facing hostile bids, comes barely two weeks after
Vancouver-based Goldcorp launched its unsolicited takeover bid,
aimed at gaining control of Osisko's huge Malartic gold mine in
Osisko has already advised its shareholders to reject the
"Osisko believes that the hostile bid is opportunistic and
financially inadequate and threatens to deprive Osisko's
shareholders of adequate consideration for their shares," the
company said in a statement.
Goldcorp disclosed earlier in January that it chose to go
ahead with the unsolicited bid after a long series of frustrated
attempts to engage Osisko in talks about a deal.
In documents filed with securities regulators in Canada,
Goldcorp gave details of a series of attempts, since 2008, to
reach a friendly deal with Osisko. The company said Osisko's
management has continually refused to either negotiate, or
engage in meaningful dialogue.
In the documents, Goldcorp said it proceeded with its bid
only after the expiration of the standstill provision within the
2012 confidentiality agreement it had signed with Osisko.
Montreal-based Osisko in the lawsuit filed in Quebec alleged
that Goldcorp "misused confidential information" and otherwise
acted in a manner not permitted by the confidentiality agreement
between the parties.