FP says Osisko doubts Goldcorp will make new bid

2014-04-09 06:48 ET - In the News

Also In the News (C-G) Goldcorp Inc (2)
Also In the News (C-YRI) Yamana Gold Inc

The Financial Post reports in its Wednesday edition that Osisko Mining boss Sean Roosen believes Goldcorp has internal problems to deal with, which he figures will prevent it from making another offer for his company and its Canadian Malartic mine in Quebec. The Post's Peter Koven writes that Mr. Roosen says: "There's two schools of thought. ... Either they drop [the bid] and they go fix what's behind the fence at their house, or they can't afford not to have Malartic because they've got too many problems with their other assets. ... I suspect they'll drop out and go do something else." Goldcorp launched a $2.8-billion hostile bid for Osisko in January. Osisko had no desire to give up Canadian Malartic, so it came up with a creative alternative. It agreed to sell a 50-per-cent interest in its assets to Yamana Gold and reach new financing commitments with two pension funds. The deals allow Osisko to distribute about $1-billion in cash to shareholders while continuing to run the mine. Goldcorp conducted a site visit of Canadian Malartic last week. Investors are now watching to see if it will top the Yamana deal (worth about $7.60 a share). Mr. Roosen says Goldcorp should address its own assets first.