Osisko shareholder says Goldcorp’s hostile offer will succeed

Sprott Asset Management chairman and Osisko shareholder, Rick Rule, says Goldcorp’s bid has priced in the gold market and will succeed.

(Bloomberg) -

Goldcorp Inc.’s C$2.72 billion ($2.43 billion) hostile bid for Canada’s Osisko Mining Corp. has priced in the gold market and will succeed, said the chairman of Sprott Asset Management, an Osisko shareholder.

“The bid has fully priced in current gold prices and will yield Goldcorp tremendous benefit down the road at higher gold prices,” Rick Rule said today in a telephone interview. “It’s a vindication of what the team at Osisko has done.”

Goldcorp, the world’s second-largest gold producer by market value, first made its cash-and-stock bid on Jan. 13 to gain control of Osisko’s Canadian Malartic mine in Quebec. At the time, the cash-and-stock offer valued Osisko as about C$5.95 a share. Sprott Asset Management, a unit of Toronto-based Sprott Inc., owns 0.6 percent of Osisko, according to data compiled by Bloomberg.

Osisko has the “ability” to see its share price rise to C$8 to C$12 in the next 12 to 18 months based on current gold prices, Chief Executive Officer Sean Roosen told a mining conference organized by TD Securities Inc. on Jan. 28.

To contact the reporter on this story: Debarati Roy in New York at droy5@bloomberg.net

To contact the editor responsible for this story: Millie Munshi at mmunshi@bloomberg.net

©2014 Bloomberg News

**************************
Rick Rule....very smart and shrewd "investor" , but also very slick in my mind...almost too slick...

Cheers, Luker