Bidding Heats Up for Osisko As Joint Agnico Eagle Mines and Yamana Gold Offer US $3.9 Billion

In a new twist to the dramatic efforts to control Osisko Mining, a joint bid has been tendered by Agnico Eagle Mines and Yamana Gold reportedly worth $ 3.9 billion challenging the hostile takeover bid attempt by Goldcorp.

“With the announcement today of the combined bid by Yamana and Agnico Eagle, I believe we have delivered shareholders the superior value option to the hostile attempt to acquire our company,” Osisko chief executive Sean Roosen said.

The Agnico Eagle Mines and Yamana Gold offer is seen as a friendly takeover offer by Osisko Mining’s management team. Click on link for Osisko’s presentation on the friendly bid by Agnico Eagle Mines and Yamana Gold.

http://www.osisko.com/investors/acquisition-agreement-yamana-osisko/

Goldcorp which considered the second most valuable gold miner after Barrick Gold has been trying to takeover Osisko since early January, 2014. Osisko’s management team have been fighting the Goldcorp bid ever since feeling that it does not adequately value the worth of its operations.

Both bidding groups are looking to incorporate the highly profitiable Osisko low-cost Malartic gold mine in Quebec.

The joint bid by Agnico Eagles and Yamana Gold is cash-and-stock bid, which values Osisko at $8.15 a share, 11% more than what they’d get if accept the  $3.6 billion hostile offer from Goldcorp.

Under the terms of the Agnico Eagles and Yamana proposal, Osisko shareholders will get $1 billion in cash, $2.33 billion of Agnico and Yamana shares, and shares of yet to be created holding company valued at roughly $575 million. This new entity will have a royalty on the Malartic mine.

Roosen, the Osisko President and CEO further added that the “new Osisko” would be a company with regular and strong cash flow, strong future potential for increasing cash flow, and tremendous upside exploration potential."

Goldcorp did not endear themselves to Osisko management in a statement issued earlier this week stating that they would replace the existing board of directors at Osisko with its own slate of nominees.

Goldcorp earlier said they would nominate 11 people including its own chief executive Chuck Jeannes to the Osisko board for election at the company's annual meeting next month.

Osisko agreed to pay a $195 million break fee to Agnico and Yamana if the transaction does not go ahead. The deal needs the approval of Osisko shareholders by a two-thirds vote.