COS urges shareholders to reject Suncor offer

Canadian Oil Sands Ltd. (COS) is recommending that shareholders reject the offer made earlier this month by Suncor Energy Inc. to acquire all outstanding COS shares (OGJ Online, Oct. 6, 2015).

COS’s board has completed a full review of the $4.3-billion (Can.) offer and determined it to be inadequate, opportunistic, and exploitive.

The offer “substantially undervalues” the COS 36.74% ownership in the Syncrude oil sands joint venture, COS said.

In a letter to shareholders, COS said the Suncor bid “fails to recognize that COS is strongly positioned to withstand low oil prices and emerge with even greater value when oil prices recover.”

COS said the Suncor bid is “highly opportunistic” as it is “designed to take advantage of unprecedented political, economic and regulatory uncertainty in the industry and the dramatic deterioration in the price of COS common shares.”

COS’s board is looking at a “full range of strategic alternatives,” it said.

Did You Like this Article? Get All the Energy Industry News Delivered to Your Inbox

Subscribe to an email newsletter today at no cost and receive the latest news and information.

 Subscribe Now

Whitepapers

The Time is Right for Optimum Reliability: Capital-Intensive Industries and Asset Performance Management

Imagine a plant that is no longer at risk of a random shutdown. Imagine not worrying about losing...

Going Digital: The New Normal in Oil & Gas

In this whitepaper you will learn how Keystone Engineering, ONGC, and Saipem are using software t...

Maximizing Operational Excellence

In a recent survey conducted by PennEnergy Research, 70% of surveyed energy industry professional...

Leveraging the Power of Information in the Energy Industry

Information Governance is about more than compliance. It’s about using your information to drive ...