Goldcorp may be overpaying for Osisko assets, Cowen says

|About: Goldcorp Inc. (GG)|By:, SA News Editor

The verdict among analysts seems mixed regarding Goldcorp's (GG -0.8%) unsolicited $2.6B bid for Osisko Mining; shares are down but well off early lows.

Barclays believes both the producing Canadian Malartic mine as well as potential development assets fit well within the geographical risk profile of GG's current portfolio of mines.

Cowen notes that while the acquisition makes sense from an operational standpoint, it thinks GG may have overpaid; Osisko already was trading at a sizable premium to intrinsic value, and the additional premium adds little, if any, accretive value to GG.

J.P. Morgan adds that the Malartic asset will be relatively susceptible to any further weakness in the gold price, given the low grade of the reserves.