VANCOUVER – Goldcorp Inc. (TSX:G) says it won’t change its latest takeover offer for Osisko Mining (TSX:OSK) and will let it expire on Tuesday.
The Vancouver-based company appears to be walking away from a hostile takeover attempt for Osisko, which always argued that Goldcorp’s offer was too low.
Montreal-based Osisko received a rival friendly offer worth about $3.9 billion last week from Yamana Gold (TSX:YRI) and Agnico Eagle mines Ltd. (TSX:AEM), both headquartered in Toronto.
The Yamana-Agnico offer valued Osisko about eight per cent above Goldcorp’s latest bid, worth $3.6 billion as of last week — although the spread fluctuates because of the shares included in each offer.
Goldcorp’s initial offer in January was worth about $2.6 billion in cash and shares.
“We stated from the beginning of this process that we would remain disciplined with respect to our offer to acquire Osisko, and our decision not to amend the offer is consistent with that commitment,” Goldcorp president and CEO Chuck Jeannes said in a statement issued Monday afternoon.
Goldcorp’s latest offer required at least 50.1 per cent of Osisko’s outstanding shares be tendered by about midnight Tuesday night. It had been increased to $2.92 cash and 0.17 of a Goldcorp common share on April 10, worth a total of $7.38 on Monday afternoon.
The Yamana-Agnico offer was more complex, offering a combination of cash and shares in three companies. The cash portion was $2.09 plus 0.26471 of a Yamana share, 0.07264 of an Agnico-Eagle share and one share of a new Osisko valued at $1.20 per share. That would be worth about $7.66 on Monday.