Canadian mining company Osisko Mining has rejected Goldcorp’s C$2.6bn ($2.4bn) takeover offer, claiming that the offer was financially inadequate and not in the best interests of shareholders.

Osisko is the owner of the Canadian Malartic mine in northern Québec, and said that after thorough consideration and discussion, its board dismissed the hostile bid, saying it significantly undervalues the gold miner’s world-class mine and the company’s portfolio of high-potential projects in North America.

Goldcorp’s premium offer and the transaction multiples implied by it are both below the relevant precedents. It implies a multiple of 1.0x versus previous multiples of 1.8x for large-scale producers.

Osisko stated that the current offer implied a 15% premium at the time of announcement and is significantly less today.

Goldcorp is the world’s second-largest gold producer by market value. On 13 January this year, the company said that it would offer to pay Osisko shareholders 0.146 of a Goldcorp common share plus C$2.26 in cash for each Osisko common share.

Goldcorp believes that the transaction will provide the company with immediate free cashflow, as it completes the construction of its key growth projects at Cerro Negro, Éléonore and Cochenour over the next 18 months.

The deal also leverages Goldcorp’s existing investments in Québec and Ontario, with the opportunity for corporate and regional synergies.

Goldcorp produced about 2.67 million ounces of gold last year and said that the acquisition would increase the company’s annual gold production by about 18%.

Osisko operates in Canada with a focus on gold mines in the Abitibi gold belt of Québec.