Canada stocks gained close to 140 points or 1% on Wednesday with
the resources heavy index boosted by better than expected economic
growth in China for the first quarter that raised the prospect of
increased demand for Canadian commodities from that country.
All sectors were higher, led by Energy.
North American equity markets appeared to largely shrug off
dovish comments from Bank of Canada Governor Stephen Poloz early in
the day, then separate dovish comments from U.S. Fed Chairman Janet
Yellen and later again the release of largely uninspiring comments
within the Fed's latest Beige Book.
Story of the day once again involved Osisko Mining Corporation
(OSK.TO) - easily the most actively traded with five times more of
its stock changing hands than the next busiest - and its bigger
rival and hostile suitor Goldcorp (G.TO, GG).
OSK jumped near 7% to 52 week high type levels.
Today, Osisko, Yamana Gold (YRI.TO, AUY) and Agnico Eagle Mines
(AEM, AEM.TO) entered into an agreement that would see Yamana and
Agnico Eagle jointly acquire 100% of Osisko's issued and
outstanding common shares for total consideration of C$3.9 billion
or C$8.15 per share. The total offer consists of approximately C$1
billion in cash, C$2.3 billion in Yamana and Agnico Eagle shares,
and creation of a new company with an implied value of
approximately C$575 million. Osisko will own shares of both Yamana
and Agnico should the deal go ahead. A statement said the offer
represents an 11% premium to the current Goldcorp hostile bid.
Just before that announcement, GOLDCORP said a notice is being
delivered today to takeover target Osisko of an intention to
nominate 11 for election to its board. All of the Goldcorp nominees
other than Clement Pelletier, who is nominated for election as a
director of Goldcorp at its upcoming annual and special meeting,
are currently directors or officers of Goldcorp, which has been a
hostile suitor of Osisko. On April 10, 2014, Goldcorp increased its
previous offer to acquire all of the outstanding common shares of
Osisko to C$7.65 per Osisko share for a total consideration of
approximately C$3.6 billion.
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