By Euan Rocha
TORONTO Jan 15 Osisko Mining Corp said
on Wednesday it was reviewing Goldcorp Inc's
unsolicited C$2.6 billion ($2.4 billion) takeover proposal, but
considered the 15 percent premium it offered as "very low".
The Montreal, Quebec-based gold miner said the bid was
opportunistic and it would advise shareholders after its board,
financial and legal advisers evaluated the offer.
"Osisko's board of directors remains committed to delivering
superior value for shareholders and all stakeholders, and will
continue to pursue all initiatives to that end," said the miner.
Goldcorp's cash-and-stock bid for Osisko was worth C$5.95 a
share when it was made on Monday, offering Osisko investors a 15
percent premium to the company's closing price on Friday.
Due to the pullback in Goldcorp's shares, the value of the
bid has fallen to C$5.81 a share.
Osisko shares were trading flat at C$6.22 on Wednesday, but
holding well above the value of the Goldcorp bid, indicating
shareholders expect a sweetened offer will emerge.
Goldcorp, which wants control of Osisko's Malartic gold mine
in Quebec, said on Tuesday it chose to proceed with an
unsolicited offer after a long series of frustrated attempts to
engage Osisko in talks about a possible deal.
The acquisition of the large, low-grade Malartic deposit
would boost Goldcorp's proven and probable reserves by some 10
million ounces, but also present dangers, including
susceptibility to further gold price weakness.
Shares in Osisko, along with those of gold miners across the
world, are trading well below their peak levels, as the price of
spot gold has fallen 26 percent over the last 12 months
to trade at $1,237 an ounce.
Osisko's stock peaked at C$16.39 a share in December 2010,
when gold was trading around the $1,400 level.
The company said it has retained BMO Capital Markets and
Maxit Capital as its financial advisers, while Bennett Jones LLP
and Skadden, Arps, Slate, Meagher & Flom will act as its legal
The board has formed a special independent committee to
evaluate the takeover proposal. The committee has hired Stikeman
Elliott LLP as its legal adviser.