The board of Canadian Oil Sand Ltd. (COS) reported it will review the unsolicited takeover offer made Oct. 5 by Suncor Energy Inc., Calgary. Suncor’s offer to acquire all the outstanding shares of COS is valued at $4.3 billion (Can.).
Under the offer’s terms, each COSL shareholder would receive 0.25 of a share of Suncor for every share of COS, Suncor reported.
COS urged its shareholders “not to take any action or make any decision with regard to the Suncor offer until the board has had an opportunity to fully review the Suncor offer and to make a recommendation as to its merits.”
Steve Williams, Suncor president and chief executive officer, called his company’s offer a “financially compelling opportunity” for COS shareholders.
COS holds a 36.74% interest in the Syncrude project, the largest producer of light, sweet synthetic oil from Canada’s oil sands.