Boston, MA 04\/04\/2014 (wallstreetpr) –\u00a0Yamana <\/b>Gold Inc. (USA) (NYSE:AUY)<\/b> is set to bid for Osisko Mining Corp. This bid comes a week after Goldcorp Inc. (USA) (NYSE:GG)\u2019s<\/b> Chairman Ian Telfer was reported to have stated that he didn\u2019t see any other entity entering into the fray for thwarting his company\u2019s USD 2.47 billion hostile bidfor Osisko.<\/p>\n
Yamana has offered CAD 1.47 billion for a 50 percent stake in Osisko\u2019s assets, thus valuing Osisko at almost 7.6% premium over Goldcorp\u2019s bid of CAD 2.7 billion.<\/p>\n
What are they fighting for?<\/strong><\/p>\n Yamana Gold Inc. (USA) (NYSE:AUY) and Goldcorp are mining companies looking to take advantage of a recent slump in prices of the yellow metal to acquire profitable operations of companies like Osisko. Osisko\u2019s main asset is the Canadian Malartic mine in Quebec, which would have figured in Goldcorp\u2019s top mines, had Yamana not queered the pitch.<\/p>\n Goldcorp Inc. (USA) (NYSE:GG)\u2019s confidence stemmed from the fact that many mining companies previously had to write downtheir past takeovers of goldmines, hence not many would be willing to act as suitors for companies like Osisko.<\/p>\n Osisko\u2019s stock has appreciated 7.3 percent to close at CAD 7.38 in Toronto stock exchange. The price is still less than Yamana\u2019s per-share offering of CAD 7.60. However it is a considerable jump over Goldcorp\u2019s bid of CAD 6.29 which used a combination of cash and stock.<\/p>\n The Deal Contours<\/strong><\/p>\n As per the agreement with Yamana, Osisko would be able to maintain its head office in Montreal, which may mollifycalls for companies to stay in the Francophile region of Quebec. Existing shareholders would receive a combination of cash, Yamana shares and a new set of common shares of Osisko. The deal is approximately a 22 percent uptick over the Goldcorp offer. The deal from Yamana Gold Inc. (USA) (NYSE:AUY) is being backed by participation of two of Canada\u2019s largest pension funds.<\/p>\n The agreement would require Osisko to sell a portion of its future gold from the Canadian Malarticmine to Caisse de Depot et Placement du Quebec. Simultaneously the Canada Pension Plan Investment Board will allow for enhancement of credit facility to Osisko. This agreement would help Osiskoaccess an additional CAD 550 million in funding.<\/p>\n","protected":false},"excerpt":{"rendered":" Boston, MA 04\/04\/2014 (wallstreetpr) –\u00a0Yamana Gold Inc. (USA) (NYSE:AUY) is set to bid for Osisko Mining Corp. This bid comes a week after Goldcorp Inc. […]<\/p>\n","protected":false},"author":32,"featured_media":18664,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"rop_custom_images_group":[],"rop_custom_messages_group":[],"rop_publish_now":"initial","rop_publish_now_accounts":{"twitter_2902945987_2902945987":""},"rop_publish_now_history":[],"rop_publish_now_status":"pending","footnotes":""},"categories":[2236],"tags":[3805,4540,3806,4539],"stock_ticker":[],"class_list":["post-18661","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business","tag-goldcorp-inc-usa-nysegg","tag-nyseauy","tag-nysegg","tag-yamana-gold-inc-usa-nyseauy","entry"],"acf":[],"yoast_head":"\n