MONTREAL – Osisko Mining Corp. (TSX:OSK) is suing Goldcorp (TSX:G), alleging the big Vancouver-based miner misused confidential information in making its hostile takeover bid.
Osisko, which has rejected the $2.6-billion Goldcorp offer as “opportunistic and financial inadequate,” says it has filed suit in Quebec Superior Court.
The allegations, which have not been proven, also include claims that Goldcorp acted in bad faith and in a manner contrary to applicable law.
“Accordingly, Osisko is seeking an order enjoining the hostile bid and further conduct by Goldcorp that Osisko alleges is in breach of the confidentiality agreement,” the company said in a statement Wednesday.
Osisko says it believes the Goldcorp bid threatens to deprive Osisko’s shareholders of adequate consideration for their shares without providing the company’s board with a sufficient opportunity to “properly convey the value of Osisko’s world-class assets or to develop, review and evaluate all value-enhancing alternatives.
In formally rejecting the Goldcorp bid last week, Osisko said it was working with its advisers including talks with third-parties regarding “strategic alternatives,”‘ urged shareholders not to tender to the bid.
Osisko shares have traded well above Goldcorp’s cash-and-stock bid, which had an implied value of about $5.95 when it was made, and analysts have suggested that Goldcorp will have to raise its offer if it wants to close the deal.
On the Toronto Stock Exchange, Osisko’s shares closed up 28 cents, or 4.24 per cent, at $6.89 on Wednesday.
Osisko’s main asset is the Canadian Malartic gold mine in northern Quebec where it has been ramping up operations since its first commercial production in May 2011. It is also pursuing exploration on a number of properties in Ontario and Mexico.
Goldcorp chief executive Chuck Jeannes has said Canadian Malartic would rank among his companies’ best operations if the takeover is successful.
The company, one of Canada’s largest miners with a market cap of more than $22 billion, has precious metal properties in Canada, the United States and Central and South America. It’s shares closed up $1.02, or 3.83 per cent, at $27.64 on Wednesday.