Osisko CEO still favors Yamana, despite Goldcorp's new C$3.6B bid


Goldcorp's (GG -1.5%) sweetened bid hasn't swayed Osisko Mining (OSKFF +1.6%) CEO Sean Roosen, who makes it clear his company still favors a deal with Yamana Gold (AUY +1.4%) since it ensures continued strong exposure to the Canadian Malartic mine in Quebec: "It has a higher upside than Goldcorp ever will."

Goldcorp's Chuck Jeannes sees it differently, of course, maintaining that Osisko shareholders will retain continued exposure to Canadian Malartic as well as benefit from Goldcorp’s portfolio of world-class assets.

Osisko shareholders may be turned off by the complexity of the AUY deal; at least one analyst thinks the GG bid will be viewed more favorably by investors because it is more straightforward and worth slightly more.

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Comments (11)
  • dancing duke
    , contributor
    Comments (143) | Send Message
     
    Very self serving. Maybe he will get to keep his job.
    10 Apr 2014, 10:39 AM Reply Like
  • Agent Graves
    , contributor
    Comments (147) | Send Message
     
    How long before GG's allies stop shorting AUY?
    10 Apr 2014, 11:10 AM Reply Like
  • loodi
    , contributor
    Comments (2) | Send Message
     
    Smart move by GG while gold prices are still low.Read Jim Rickards opinion where gold prices are going.
    10 Apr 2014, 12:34 PM Reply Like
  • Agent Graves
    , contributor
    Comments (147) | Send Message
     
    If the Canadian dollar keeps dropping, the benefits will be huge for whichever company comes out on top, regardless of what the gold price does.
    10 Apr 2014, 12:36 PM Reply Like
  • Maobama
    , contributor
    Comments (458) | Send Message
     
    I'll say it again: Roosen is all about saving his job, perks and status. GG is the better deal.
    10 Apr 2014, 01:10 PM Reply Like
  • nocnurzfred
    , contributor
    Comments (705) | Send Message
     
    As a share holder of AUY, I say let the deal go, or at the very least, re do the deal for a controlling interest. And if the AUY deal does go through, then maybe GG will buy AUY.
    10 Apr 2014, 06:06 PM Reply Like
  • nocnurzfred
    , contributor
    Comments (705) | Send Message
     
    Clearly a sweetheart deal for the Osisko team of managers if the AUY deal goes through. How many thousands of ozs will that second team cost the shareholders? GG has the right idea. If AUY does not re nogotiate for control, I will vote against.
    10 Apr 2014, 06:26 PM Reply Like
  • 360_Degree_View
    , contributor
    Comments (27) | Send Message
     
    I too am a longtime investor in AUY and believe the current offer for 50% of Osisko is far and away the best deal for both companies. The new stream of gold from the Malartic mine will generate the much needed cash AUY needs to develop its other properties. GG could by AUY but that's probably not in the near term cards. A better fit for GG, in my opinion, would be New Gold / NGD. In fact NGD 's current CEO is Randall Oliphant, the former CEO of GG. NGD is in many ways a 'mini me' of GG. NGD's net cost to produce an ounce of gold is among the lowest in the industry and lower than GG's current cost of production.
    11 Apr 2014, 12:31 PM Reply Like
  • Chaplain Matthew
    , contributor
    Comments (24) | Send Message
     
    Friends,
    I respectfully disagree with your analysis as (imho) it is short-sighted. I initially invested in Osisko in no small measure because it offers a pure-play on Canada's status as a politically secure venue governed by a tradition of rule-of-law much more consistent with my level of risk tolerance than GG's portfolio.
    It may be (and it's too soon for me to make this judgment) that GG's offer of the moment carries an immediate premium to the OSK-AUY deal. But in the longer term I believe that share-holder value will be far higher without GG.

     

    As far as Roosen wanting to protect his job, I say, "Yawn." What's different about him than any other CEO? And, differently than many CEOs, this man is largely responsible for transforming the Malartic vision to a reality.

     

    Like all of you, I reserve the right to be mistaken, but though I'll carefully read the GG offer given the information at hand this is my current view.

     

    Chaplain Matthew
    10 Apr 2014, 06:36 PM Reply Like
  • jcbowden@mac.com
    , contributor
    Comment (1) | Send Message
     
    My tea leaves show AUY partnering with OSK and then, later, GG buying AUY.
    Best of all worlds.
    11 Apr 2014, 02:37 AM Reply Like
  • nocnurzfred
    , contributor
    Comments (705) | Send Message
     
    Does anybody know details of the existing metals stream agreement? Could be 50-100% of production for as little as $400 an oz. GG will not do any deal for 50% interest in a company.
    11 Apr 2014, 07:49 AM Reply Like
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