UTS Energy announced that its Board of Directors unanimously recommends that shareholders reject the revised unsolicited offer by Total E&P Canada Ltd. (Total) to acquire UTS for $1.75 per common share. The Board believes that this revised offer remains inadequate.
Total has made no attempt to contact UTS since first launching its unsolicited bid in January. Each of the directors and officers of UTS has indicated their intention not to accept the revised Total offer.
"We have received strong support from our shareholders since Total launched its hostile bid in January. Several of our largest shareholders have publicly stated their ongoing opposition to, and dissatisfaction with, Total's bid. The revised bid in no way reflects improving industry
"We see the proposed merger of Suncor and Petro-Canada as enhancing the intrinsic value of the Fort Hills Project, which in turn directly benefits UTS shareholders. Integration of the Fort Hills Project with the existing Suncor expertise, assets and infrastructure would result in
"UTS and its financial advisors are involved in discussions with other parties with respect to alternative transactions, including restructuring," said John Watson, Chairman of the independent Special Committee of the Board of Directors. "We intend to continue those
In reaching its conclusions, the Board carefully reviewed and considered the revised offer, with the benefit of advice from its financial and legal advisors and the report and recommendation of an independent Special Committee of UTS directors. The Board's assessment of the revised offer and the reasons for the recommendation that shareholders reject it will be set out in a director's circular to be issued shortly.
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