January 29, 2014 / 11:01 PM / 4 years ago

UPDATE 1-Osisko sues in attempt to foil Goldcorp's hostile bid

TORONTO, Jan 29 (Reuters) - 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 Quebec.

Osisko has already advised its shareholders to reject the bid.

“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.

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