DAILY NEWS Oct 7, 2015 4:25 PM - 0 comments

OIL SANDS: COSL rallies against Suncor takeover bid

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CALGARY – Canadian Oil Sands Ltd. has adopted a shareholders rights plan to fend off the hostile takeover bid by Suncor Energy. Earlier this week, Suncor offer to buy up all COSL shares and assume its debt in a deal worth $6.6 billion.

COSL said Suncor originally approached it in March 2015 in a deal that had an implied share price of $12.96. The COSL board rejected that offer. Since that time the price of crude oil and fallen significantly, and the latest bid reflects that. The new offer implies a value of slightly less than $9.00 per COSL share.

COSL’s new rights plan defines a permitted takeover bid as one that is made to all its shareholders by way of a takeover bid circular prepared in accordance with applicable securities laws and that remains open for acceptance by COSL shareholders for a minimum of 120 days. Suncor’s recent offer remains open only until Dec. 4, 2105. The longer open period would give COSL an opportunity to seek other options to the Suncor bid. 

Details of the bid are posted at the Suncor website, Suncor.com/en/investor/434.aspx

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Suncor Energy Inc

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