Yamana Gold to bid for Osisko Mining

YamanaGold to bid for Osisko MiningYamana Gold Inc has said that it might be planning to bid for Osisko Mining Corp after rival Goldcorp Inc launched a C$2.76 billion or $2.5 billion hostile offer for Osisko Mining.

Goldcorp Inc. Chairman Ian Telfer had said that he does not expect any other company to bid for the company. Yamana'sC$1.47 billion bid for a 50 per cent stake in Osisko's assets might be more attractive to the board members and shareholders than Goldcorp's plan to buy the whole company. Telfer has asid that he does not expect anyone to top his company's hostile bid for Osisko however many believe that Goldcorp is not liklely to raise the bid. Yamana's offer values C$7.60 per share as of April 1, and Goldcorp's cash-and-stock bid is worth about C$6.29.

Yamana and Goldcorp are looking to take advantage of a recent fall in gold prices to build up their mine reserves and acquire more profitable operations. Osisko's main asset includesCanadian Malartic project in Quebec, which will become the company's major asset.

Osisko climbed 7.3 percent to close at C$7.38 in Toronto.