VANCOUVER – Goldcorp Inc. (TSX:G) has extended until April 4 its hostile takeover offer for Osisko Mining Corp. (TSX:OSK), which was to expire Friday.
Osisko has rejected the stock-and-cash offer worth about $2.9 billion as inadequate and shares in the company have traded well above the Goldcorp offer since it was first announced in January.
Osisko’s main asset is the Canadian Malartic gold mine, northwest of Val D’Or, Que., where it has been ramping up operations since commercial production began in May 2011.
Earlier this month, Goldcorp agreed not to take up and pay for any Osisko shares under its offer until April 15, while Osisko agreed to waive its shareholder rights plan by April 14.
Osisko also agreed to provide Goldcorp with access to due diligence materials starting April 1, or earlier, if it signs a deal with another bidder.
Under terms of the offer, Osisko shareholders are entitled to receive 0.146 of a Goldcorp common share plus $2.26 in cash for each Osisko common share.
Shares in Osisko were down four cents at $7.55 on Friday, while Goldcorp shares were off 16 cents at $29.80, making the current implied value of the offer about $6.61 per share.