Goldcorp Sweetens Hostile Bid For Osisko To C$3.6 Bln

(RTTNews) - Canadian gold miner Goldcorp Inc. (GG, G.TO) said Thursday it has sweetened its hostile bid to acquire smaller peer Osisko Mining Corp. (OSK.TO) to about C$3.6 billion, or $3.3 billion, as it tries to trump a friendly offer for Osisko from rival Yamana Gold Inc. (AUY, YRI.TO). The revised offer represents a 1.3 percent premium to Osisko's closing stock price of C$7.55 on April 9.

Under the terms of Goldcorp's sweetened offer, Osisko shareholders will now be entitled to receive C$7.65 per share, up from its previous offer of C$6.21 per share. This will consist of 0.17 of a Goldcorp common share plus C$2.92 in cash for each Osisko common share.

Goldcorp said its considers its revised bid as superior to Osikso's deal announced with Yamana Gold on April 2. The company said its revised offer will be extended to April 22 and the minimum tender requirement is now 50.1 percent or more of the outstanding Osisko common shares.

Chuck Jeannes, president and chief executive officer of Goldcorp said, "Osisko shareholders will retain continued exposure to a consolidated and unencumbered interest in the Canadian Malartic gold mine and will participate in Goldcorp's growing portfolio of world-class assets. The choice is clear for Osisko's shareholders."

On April 2, Osisko said it agreed to sell 50 percent stake in its mining and exploration assets to bigger peer Yamana Gold for C$929.6 million in a stock and cash deal.

Yamana will pay C$441.5 million in cash and 95.7 million in shares. The deal, meant to thwart Goldcorp's hostile takeover attempt, values Osisko at C$7.60 a share.

Under the deal with Yamana, Osisko will continue to operate the Canadian Malartic Mine and all other projects under the guidance of a joint operating committee, and will maintain its head office in Montreal.

For Goldcorp, an acquisition of Osisko will enable it to add Osisko's high-quality Canadian Malartic gold mine in the prolific Abitibi mining district of Québec, which has about 10 million ounces of gold reserves. On completion of the deal, Goldcorp will be the largest gold producer in Québec province.

According to Osisko, total proven and probable mineral reserves at the Canadian Malartic mine as at January 1, 2013 are estimated at 310.6 million tonnes. The acquisition will also leverage Goldcorp's existing investments in Québec and Ontario, with opportunity for corporate and regional synergies.

In Thursday's regular trading session on the NYSE, GG is trading at $24.85, down $0.73 or 2.85 percent on a volume of 3.42 million shares.

On the Toronto stock exchange, OSK.TO is trading at C$7.64, up C$0.09 or 1.19 percent on a volume of 22.58 million shares.