Yesterday morning Vancouver's Goldcorp announced a hostile takeover of Osisko Mining in what it valued as a $2.6 billion deal. Not wasting any time, by the end of the day Goldcorp confirmed that it has formally launched its offer.
This morning Osisko responded with a news release saying that it would continue to review the offer and will communicate with its shareholders "as appropriate." A special independent committee will assess the deal and has retained legal advice.
Evidently, Osisko is not so keen on being targeted. "Osisko's board of directors noted that the 15% premium to Osisko's unaffected share price implied by Goldcorp's offer is very low and the price opportunistic in light of Osisko's proven high quality asset base."
Yesterday, Goldcorp said its cash and share offer valued Osisko shares at $5.95 each, a 28% premium.
Since the two sides cannot agree on the valuation of Osisko shares, a whole can of worms may be opened. Does Goldcorp want Osisko enough to raise its offer? Will Osisko seek out a white knight? Is the way open to more than one competing bid for Osisko? Will the Quebec miner wind up in the hands of a non-Canadian (Chinese perhaps) corporation?
A little merger mania might go a long way toward creating the best deal for Osisko shareholders.