NEW YORK (The Deal) -- Goldcorp (GG - Get Report) has increased its unsolicited bid for Osisko Mining to C$3.6 billion ($3.3 billion) in cash and shares, topping an agreed, rival offer from Yamana Gold (AUY - Get Report).
Vancouver-based Goldcorp said Thursday it will offer 0.17 Goldcorp shares and C$2.92 cash for each Osisko share, equal to C$7.65 per share based on Goldcorp's Wednesday closing price of C$27.84.
That is only 0.7% more than the C$7.60 per-share valuation of an April 2 agreement for Yamana Gold Inc. to buy 50% of Osisko's mining and exploration assets.
"Goldcorp's increased offer represents straightforward and superior value for Osisko shareholders, while ensuring accretion on key per-share metrics for Goldcorp shareholders," Goldcorp president and CEO Check Jeannes said in a statement. "The choice is clear for Osisko's shareholders."
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Goldcorp has been pursuing Osisko for more than five years, making a series of friendly bids to gain control of Osisko's Malartic mine in Quebec.
Those bids were rebuffed by Osisko, leading a frustrated Goldcorp management to make a hostile C$2.6 billion offer in January. Osisko rejected that offer and on April 2 unveiled a complicated deal with Canada's Yamana Gold, which offered C$2.19 in cash, 0.2119 of a Yamana share and a new Osisko share.
Malartic promises to be Quebec's largest gold mine. It has proven and probable reserves of 9.37 million ounces of gold and is expected to produce between 500,000 to 600,000 ounces per year over its expected 16-year life.
Goldcorp said that its latest offer was dependent on acceptances from the holders of at least 50% of Osisko shares. The offer will run until April 23. Under the terms of Yamana's agreement with Osisko it has five business days to match Goldcorp's offer. The companies also agreed a C$70 million break fee.
Shares in Osisko closed Wednesday at C$7.55. The company's market capitalization has climbed just over 60% since the start of the year, to C$3.32 billion. Goldcorp shares closed Wednesday at C$27.84, equating to a market capitalization of C$22.63 billion.