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.
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