April 8 The chief executive of Osisko Mining
Corp said on Tuesday it will be tough for Goldcorp Inc
to raise its bid for Osisko by enough to trump a rival
deal, and it is more likely that the gold producer will walk
away from the transaction.
Sean Roosen was referring to the difference in value
between Goldcorp's C$2.6 billion ($2.38 billion) hostile cash
and shares bid for Osisko launched in January and a rival "white
knight" bid for Osisko by Yamana Gold Inc. unveiled
last week. Osisko had rejected Goldcorp's bid as too low.
Roosen said Goldcorp had "painted themselves in a corner" by
telling shareholders repeatedly that they would not overpay for
Osisko. At the same time, Goldcorp had several in-house
"issues", some of which have arisen in the past week, that they
need to focus on, Roosen said.
"It will be very hard for them to come back. There is over a
$1 gap in their bid right now," Roosen said in an interview.
Osisko, Goldcorp and Yamana are Canadian gold producers,
with Goldcorp the world's second biggest based on market value.
In-house issues that Goldcorp needs to focus on include the
suspension of operations last week at its Los Filos mine in
Mexico and the filing of a technical report on its Eleonore
project in Quebec, which Roosen described as "not exactly a
Osisko last week unveiled a complex deal involving Yamana
buying a 50 percent stake in its mining and exploration assets
for C$930 million, a transaction it said represented a 22
percent premium to Goldcorp's offer at that time.
Roosen said feedback from shareholders to the Yamana deal
has been positive.
($1 = 1.0930 Canadian Dollars)
(Reporting by Nicole Mordant in Vancouver; editing by Andrew