Apr. 21, 2014, 12:51 PM
- Goldcorp (GG +0.8%) officially gives up its bid for Osisko Mining (OSKFF -0.1%), saying it will not raise its offer to acquire the company; its most recent C$3.6B offer will expire tomorrow night before midnight.
- Yamana Gold (AUY -3.5%) and Agnico Eagle Mines (AEM -3.7%) joined forces last week for a C$3.9B offer to acquire Osisko.
Apr. 16, 2014, 9:51 AM
- Yamana Gold (AUY -1.5%) and Agnico Eagle Mines (AEM -3.3%) agree to acquire Osisko Mining (OSKFF) for C$3.9B, or C$8.15/share.
- The total offer consists of C$1B in cash, C$2.33B in AUY and AEM shares, and shares of a new company with an implied value of ~C$575M.
- The companies say the offer represents an ~11% premium to the implied value of Goldcorp's (GG +2%) hostile bid.
- The deal replaces a transaction announced April 2 in which AUY agreed to buy 50% of Osisko’s assets.
Apr. 10, 2014, 9:56 AM
- 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.
Apr. 8, 2014, 2:20 PM
- Osisko Mining (OSKFF +1.3%) CEO Sean Roosen predicts Goldcorp (GG +2.4%) will end up walking away from its hostile takeover attempt because it won't be able to raise its bid for Osisko enough to trump last week's offer from Yamana Gold (AUY +1.2%).
- Goldcorp had "painted themselves in a corner" by telling shareholders repeatedly that they would not overpay for Osisko and now it will be hard to come back, Roosen says.
- The CEO adds that some in-house problems had cropped up recently for GG, including the suspension of operations last week at its Los Filos mine in Mexico and the filing of a technical report on its Eleonore project in Quebec, which Roosen says was "not exactly a stellar outcome."
Apr. 3, 2014, 10:57 AM
- Goldcorp (GG -1.5%), whose C$2.6B hostile bid for Osisko Mining (OSKFF -1.7%) was set to expire this Friday, says it is extending its offer until April 15 while it continues its due diligence process at Osisko’s Malartic mine in Quebec.
- In an attempt to thwart Goldcorp's offer, Osisko said Yamana Gold (AUY -1.5%) would buy a 50% stake in its mining and exploration assets for C$930M, and GG says it plans to complete an analysis of yesterday's proposal.
- GG agreed last month not to take up and pay for shares that were deposited in favor of its bid before April 15, as part of a settlement with Osisko.
Apr. 2, 2014, 9:59 AM
- Yamana Gold (AUY +1.7%) and Osisko Mining (OSKFF +3%) announce a partnership in which AUY will acquire a 50% interest in Osisko's mining and exploration assets for C$441.5M in cash and 95.7M AUY common shares having an aggregate value of C$929.6M.
- AUY will become an equal partner in all of Osisko's mining and exploration assets; Osisko will continue to operate the Canadian Malartic Mine and all other projects under the guidance of a joint operating committee.
- AUY is stepping in as Osisko's white knight as the latter attempts to fight off a hostile takeover bid by Goldcorp (GG +2.9%), but the deal is complicated and will require some selling to shareholders.
Mar. 26, 2014, 11:59 AM
- Goldcorp (GG -2.6%) would rather walk away from its hostile $2.8B offer for Osisko Mining (OSKFF -5.7%) than pay too much, Chairman Ian Telfer says without ruling out a higher bid.
- But Telfer says he remains confident the his company’s bid will succeed; in an interview yesterday, he pointed out that Osisko is running out of time to find a white knight bidder, and that the “just say no" defense almost never works.
- Telfer says Goldcorp got what it wanted out of the settlement earlier this month as it eliminated Osisko’s poison pill and will allow the company to do more due diligence on Osisko’s Canadian Malartic mine; GG possibly could raise its bid depending on what the due diligence reveals, Telfer says.
Mar. 3, 2014, 10:57 AM
- Osisko Mining (OSKFF +5.1%) agrees to drop its legal effort to block Goldcorp's (GG +2.4%) hostile takeover bid, a possible sign that a rival offer may emerge.
- Osisko says it will allow full due diligence access to its business and assets by April 1 and won’t apply its shareholder rights plan; in exchange, Goldcorp will not to take up and pay for shares deposited in the takeover bid before April 15 unless Osisko announces a transaction with another party.
- In its own announcement, Osisko says it is aggressively pursuing alternatives, suggesting it is part of the reason for the settlement with Goldcorp.
Feb. 19, 2014, 3:19 PM
- Osisko Mining (OSKFF -3.8%) CEO Sean Roosen again urges shareholders to reject Goldcorp's (GG -2.8%) unsolicited takeover offer and adds that the bid is preventing them from getting a dividend.
- Roosen says Osisko had set the stage for significant dividend policy for 2014, but claims that some of the money is now being spent on lawyers and bankers dealing with the legal challenge against Goldcorp.
- TD Securities downgrades Osisko to Hold from Buy, believing there’s significant risk the Goldcorp offer will fail with an unfavorable court ruling.
- Late Tuesday, GG extended its C$2.89B hostile bid for Osisko to March 10.
Jan. 30, 2014, 10:51 AM
- Goldcorp's (GG -3.5%) hostile takeover offer for Osisko Mining (OSKFF -3.9%) is turning very hostile, as Osisko takes Goldcorp to court and accuses its bigger peer of using confidential information when it launched its bid earlier this month.
- Goldcorp denies the allegations and plans to defend its position; GG also says Canada's antitrust regulator has indicated it does not intend to challenge the move to acquire Osisko.
- In addition to throwing uncertainty into the takeover battle, the legal action may reduce the likelihood of a friendly deal; investors believe GG will raise its bid, but it may prove tougher to get Osisko to the bargaining table if the company thinks GG misused confidential data.
Jan. 29, 2014, 10:59 AM
- 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.
Jan. 15, 2014, 9:50 AM
- Osisko Mining (OSKFF -0.6%) says it has received and is reviewing Goldcorp's (GG -1.5%) hostile C$2.6B takeover proposal but views the 15% premium implied by the offer as "very low" and "opportunistic."
- Osisko says it has formed a special committee to study the offer and will communicate with shareholders "as appropriate."
- The deal, if completed, would be the largest in the global gold mining sector since late 2011.
Jan. 14, 2014, 12:58 PM
- A day after Goldcorp (GG -2.5%) announced its $2.6B hostile bid for Osisko Mining (OSKFF -0.8%), it files a formal bid; based on GG's Jan. 10 closing share price in Toronto, the offer to Osisko shareholders equates to C$5.95/share, a 28% premium over Osisko's 20-day volume-weighted average share.
- GG says Osisko has refused to consider several friendly offers over the last five years.
- Meanwhile, the Montreal Board of Trade urges Quebec's government to ensure a deal would not harm the local economy, citing Osisko's Montreal HQ and $500M of supply contracts it has awarded local businesses for the Malartic mine.
Jan. 13, 2014, 11:28 AM
- The big prize in Goldcorp's (GG -2.2%) proposed $2.6B bid for Osisko Mining (OSKFF +20.5%) is the giant Canadian Malartic gold mine in Quebec, which is likely to produce 500K-600K oz./year of gold over its 16-year mine life.
- Osisko had challenges ramping up production, but Goldcorp considers the mine low-risk; during a conference call to discuss the hostile offer, GG says Malartic would be one of its leading mines in terms of free cash flow, production and net asset value, and the mine would benefit from GG's technical and operating expertise (Briefing.com).
- GG says the deal will be immediately accretive on key operating and financial metrics, including free cash flow, operating cash flow, net asset value, gold production and gold reserves.
- TD Securities analyst Greg Barnes thinks a rival bid is unlikely given that other senior gold miners are struggling with "heavier balance sheets and generally weaker multiples” relative to Goldcorp.
Oct. 7, 2013, 11:57 AM
- AuRico Gold (AUQ +3.2%) and Osisko Mining (OSKFF.PK +6.2%) are upgraded to Outperform from Neutral by Credit Suisse.
- The firm notes that AUQ has changed management, transformed its asset base divesting higher cost mines to lower costs mines, revised expectations, and has delivered against targets; market hesitation remains, providing an attractive entry point.
- Osisko's Malartic project is progressing to full production, costs are improving to levels in line with the sector average, liquidity is no longer an immediate concern, and its valuation remains attractive.
- Despite the upgrade, the firm cuts its price target for AUQ to $5 from $5.50; it raises its target for Osisko to $7 from $6.
Apr. 16, 2013, 11:58 AM
Analysts at RBC Capital think credit downgrades for some top gold miners are a strong possibility. There's a “moderate probability” Barrick Gold (ABX -0.1%) could trigger a one-notch downgrade at $1,400 gold; at $1,300, Newmont Mining (NEM +1.9%) could get downgraded, and Kinross Gold (KGC +1.8%) could get cut right to junk status. TD Securities also offers similarly disturbing conclusions. (also)| Apr. 16, 2013, 11:58 AM | 5 Comments