Hedge funds slash bullish wagers on gold before war jitters
Speculators have reduced net-long positions by 3.6%.
For five years, Vancouver-based Goldcorp has been trying to buy Osisko to gain control of the company’s massive gold mine in Quebec called the Canadian Malartic, shown in this photo. (Courtesy of Osisko)
Goldcorp (TSX:G) (NYSE:GG) has extended its $2.6 billion unsolicited takeover bid on fellow Canadian miner Osisko (TSX:OSK), from Feb. 19 to March 10, after the Quebec Superior Court set a hearing yesterday to decide if its complaints against the Vancouver-based gold giant have merit.
On Tuesday Osisko announced it was suing Goldcorp, alleging the firm misused confidential information to attempt a takeover. Osisko has already advised its shareholders to reject the bid.
Goldcorp, which is seeking access to access to Osisko’s Malartic mine in Quebec, already has a gold project in the province – Éléonore, set to begin production later this year.
If it goes through, the proposed deal will make Goldcorp, which already is world’s largest gold miner by market capitalization, the No. 1 gold producer in the province of Quebec.
