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Osisko drops lawsuit against Goldcorp in takeover battle

A Goldcorp sign is pictured at the annual meeting in Toronto on May 2, 2013.
A Goldcorp sign is pictured at the annual meeting in Toronto on May 2, 2013. Aaron Vincent Elkaim/The Canadian Press

MONTREAL – Osisko Mining Corp. said Monday it has settled a lawsuit it filed against Goldcorp Inc. as part of the Montreal-based company’s fight against a hostile takeover by the senior gold miner.

Under the settlement, which deals with access to information, the offer from Vancouver-based Goldcorp has been extended to April 15, from March 10, while Osisko continues its search for an alternative bid.

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Osisko has also agreed to provide Goldcorp with access to due diligence materials starting April 1, or earlier if Osisko signs a deal with another bidder.

Under terms of the Goldcorp bid, Osisko shareholders would receive 0.146 of a Goldcorp share and $2.26 in cash per Osisko share.

The price of gold and share prices for many gold producers have risen in recent weeks but Osisko shares have traded well above the implied value of the Goldcorp offer since the bid was first announced.

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Osisko’s shares closed Friday at $7.05, giving it a market value of nearly $3.2 billion, but rose to a new high on Monday. In early trading, Osisko rose above $7.45 for the first time since early 2013.

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