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ARTICLE · 01 MAY 2014

The Return Of The Hostile Takeover Bid

Gowling WLG
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After a slow 2013 in terms of M&A activity in the Canadian mining sector, 2014 has begun with the launch of three hostile takeover bids making headlines.

CanadaCorporate/Commercial Law

After a slow 2013 in terms of M&A activity in the Canadian mining sector, 2014 has begun with the launch of three hostile takeover bids making headlines across Canada.

On January 14, 2014, Goldcorp Inc. formally launched its bid to acquire Osisko Mining Corporation. Then, on February 10, 2014, HudBay Minerals Inc. made a bid to acquire Augusta Resource Corporation. On February 19, 2014, a subsidiary of Waterton Precious Metals Fund II Cayman, LP, made a bid to acquire Chaparral Gold Corp.

The return of M&A activity has been touted positively by some as it may signal a rebound in commodity prices and the return of financial health to the mining industry. For certain junior and mid-tier companies, however, the recent hostile activity is seen as predatory and opportunistic at a time when share prices may not accurately reflect the true or potential value of a company's assets.

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