Osisko CEO says Goldcorp's hostile offer bad for entire mining sector

|About: Osisko Mng Inc (OBNNF)|By:, SA News Editor

Osisko Mining (OSKFF +2%) says it is in the process of mailing its recommendation to shareholders urging them to reject Goldcorp's (GG +2.7%) hostile takeover offer, which it calls “opportunistic” and undervalued; GG has valued its cash and stock offer at C$5.95/share, but Osisko shares have consistently traded above that level since the offer was announced.

Osisko CEO Sean Roosen tells the TD Securities Mining Conference in Toronto the C$2.6B bid for his company is not only bad for his shareholders but negative for the entire gold mining sector.

The CEO says if such low offers become acceptable in the sector, then it's hard to see how portfolio managers can make money investing in emerging growth companies such as Osisko.