Suncor Extends Time for Canadian Oil Sands to Mull Offer
Facing a deadline on Dec. 4 to either sweeten its deal to Canadian Oil Sands (COS), give shareholders more time to consider the C$4.5 billion deal, or just move on, Suncor Energy opted to push its final deadline to Jan. 8.
The deal is the first hostile takeover attempt in recent memory in Canada’s energy sector, and analysts had speculated Suncor would give COS shareholders more time to consider their offer, .25 in Suncor shares – down from a spring offer of .32 in Suncor shares. When trading ended on Friday, Suncor (NYSE: SU) shares were selling for $26.95 each; COS (TSE: COS) shares were priced at $8.70 each.
That’s a pretty solid selling point for COS shareholders; they’d be giving up control of a pure play company, but they’d gaining a stronger premium and a state in Suncor’s diversified assets.
After Suncor revealed its decision on Friday, analysts at Simmons & Company International noted that COS managers have asserted others could be competing for their interests.
“While one can’t rule it out, we would be surprised if [Suncor’s] bid was trumped,” they said in a note to investors.
WHAT DO YOU THINK?
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.
- Canada Shale Drillers Feel Permian Pain as Prices Collapse (Sep 20)
- Canadian Crude Prices Plunge Once Again (Sep 07)
- Suncor's Syncrude To Resume Some Output In July, Full Ops In Sept (Jul 09)