Suncor Extends Time, But Not Bid, On Canadian Oil Sands Deal

When it became clear their contentious offering to acquire Canadian Oil Sands Ltd. wasn’t passing muster with shareholders Jan. 8, Suncor Energy Inc. decided to give them another couple of weeks to consider the proposition.

Results of the $2.93 billion offering had not be released Monday, and messages to Suncor seeking the results didn’t yield an immediate response.

For now, Canadian Oil Sands has extended its timetable to Jan. 27 for COS shareholders to reconsider the offer, which Suncor management has said will not be amended.

In a statement released Jan. 11, Canadian Oil Sands called on Suncor to release the tender results from shareholders Jan. 8.

"Our Board has heard the message Canadian Oil Sands shareholders have sent loud and clear in overwhelmingly rejecting Suncor's hostile bid and the value you place on the assets you own," said Donald Lowry, chairman of Canadian Oil Sands, in the statement. "We will continue to work hard on your behalf to maximize value in the existing business and to surface opportunities for additional value.”

Canadian Oil Sands continues to implore its shareholders to reject the bid from Suncor, which it describes as “hostile.”

Analysts at Simmons & Company International in Houston said in a Monday note to investors it’s unclear why Canadian Oil shareholders are refusing to play ball, and, “It looks unclear at this point if SU will be able to garner the necessary shareholder support to consummate the acquisition.”

Late Monday morning, Suncor (NYSE: SU) shares were trading at $22.67 each, down almost 4 percent since the market opened. On the Toronto exchange, Canadian Oil Sands was trading up almost 1 percent to $7.54 per share.

An award-winning journalist, Deon has reported on energy, business and politics for almost 20 years. Email Deon at deon.daugherty@rigzone.com

WHAT DO YOU THINK?

Click on the button below to add a comment.
Post a Comment
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.

Related Companies
Events  SUBSCRIBE TO OUR NEWSLETTER

Our Privacy Pledge
SUBSCRIBE

More from this Author
Deon Daugherty
Senior Editor | Rigzone
 -  Offshore Gulf of Mexico Auction to Go ... (Jul 22)
 -  Moodys: Shell, Repsol and Petrobras M&... (Jul 15)
 -  BLOG: Who's Zoomin' Who When the Oil, ... (Jul 13)
 -  BLOG: $50 Oil May Not Make It to Year'... (Jun 9)
 -  Rigzone Polls: Readers Veer Toward Con... (May 6)


Most Popular Articles

Brent Crude Oil : $46.2/BBL 2.05%
Light Crude Oil : $44.75/BBL 0.42%
Natural Gas : $2.69/MMBtu 1.50%
Updated in last 24 hours