Globe says $1.50 more and Goldcorp might beat Yamana

2014-04-09 08:59 ET - In the News

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The Globe and Mail reports in its Wednesday edition Osisko Mining chief executive officer said Goldcorp would have to raise its hostile bid by at least $1.50 per share if it wants to top a friendly deal between Osisko and Yamana. The Globe's Rachelle Younglaid writes Goldcorp is after Osisko for its large Canadian Malartic gold mine in Quebec. Its unsolicited bid is valued at $6.30 per share. Meanwhile, a deal between Osisko, Yamana and two Canadian pension funds is valued at $7.57 a share. Although analysts expect Goldcorp to increase its offer, the company's CEO has said he would not overpay for Osisko. "I just don't see how they can go back to their shareholders and add $1.50 a share to this thing, which is pretty much what they would have to do," says Osisko boss Sean Roosen. Goldcorp gained access to Osisko's confidential data last week. Its executives have suggested that they could sweeten their offer if they found more value. "Everybody has unanimously agreed that this is far superior," said Mr. Roosen, after talking to his major shareholders. Shareholders were initially confused by the arrangement, which splits Osisko's assets with Yamana and involves an injection of capital from two pension funds.