Canadian Oil Sands firmly against Suncor's 'substantially undervalued bid'

CALGARY -- Canadian Oil Sands is continuing its efforts to fend off a hostile takeover by Suncor, telling shareholders again Monday that their interests will be "best served" in the long run if the company remains independent.

See Full Article

The Calgary-based company (TSX:COS) noted that Suncor has given Canadian Oil Sands shareholders until Friday to accept its all-stock offer and advises them to hold onto their shares.

Canadian Oil Sands -- the largest partner in the Syncrude oilsands operation -- has repeatedly said an independent COS will provide its shareholders with a better opportunity to profit from a return to higher oil prices.

"Suncor's substantially undervalued bid is set to lapse, and when it does they say they will walk away. For all of us, as shareholders, this scenario reveals a far more compelling and valuable alternative: Independence," COS said Monday.

Suncor (TSX:SU) has argued that with oil prices expected to remain low for some time, the status quo is risky for COS shareholders and they'd be better off as shareholders in a larger energy company.

The all-stock Suncor bid values Canadian Oil Sands at about $4.3 billion as of Dec. 31.

Suncor (TSX:SU) took its offer directly to COS shareholders on Oct. 5 after attempts to ink a friendly deal -- at a higher price -- were rebuffed by Canadian Oil Sands in the spring.

Both companies are partners in the massive Syncrude oilsands mine north of Fort McMurray, Alta. -- Suncor with 12 per cent and COS with 37 per cent.

Suncor is one of Canada's biggest energy companies, with vast holdings in the oilsands and thousands of employees. COS, on the other hand, has a staff of about 30 and relies on its Syncrude stake as its sole asset.


Latest Economic News

  • Bank places 100 'lucky pennies' across U.S. worth $1,000 each

    Economic CTV News
    DETROIT -- Stopping to pick up a stray penny off the ground may not seem worth the effort, yet one bank is trying to change that mindset by placing 100 fake pennies across the country worth $1,000 apiece. Source
  • Postmedia: Layoffs possible if buyouts don't meet cost-cutting target

    Economic CTV News
    TORONTO -- Postmedia said Thursday it plans to reduce its salary costs by 20 per cent through voluntary staff buyouts, adding that layoffs are possible if that target isn't met as it announced net losses that nearly doubled in its most recent quarter. Source
  • Wal-Mart, offer more choices for Singles Day

    Economic CTV News
    NEW YORK -- Wal-Mart and are offering more choices for Chinese shoppers ahead of Singles Day, one of the world's biggest online shopping days of the year. That includes two-hour delivery services at some Wal-Mart stores and a Wal-Mart global store on JD Worldwide,'s cross-border platform. Source
  • Postmedia aiming to cut staff costs again

    Economic CBC News
    Postmedia Network Canada Corp. says its intends to reduce staffing costs again as the company reported lower revenue and a deeper quarterly net loss. The company, which currently has about 4,000 employees, says it plans to cut costs through staff buyouts over the next few weeks, adding that layoffs are possible if its target isn't met. Source
  • Snoopy, Peanuts gang, cut loose by insurance giant MetLife as it retools

    Economic CBC News
    The MetLife Snoopy Two blimp comes in for a landing at the Park Township Airport in Holland, Mich., in this July 2007 photo. After 31 years as the face of insurance giant MetLife Inc. Source
  • Justin Trudeau on hand as Amazon announces Toronto-area expansion that will employ 700 people

    Economic CBC News
    Prime Minister Justin Trudeau is set to make an announcement at an Amazon facility in Brampton, Ont., on Thursday. It's not known what the announcement may entail, but given recent news from the company, it's likely to be jobs-related. Source
  • Justin Trudeau to make announcement at Toronto-area Amazon facility

    Economic CBC News
    Prime Minister Justin Trudeau is set to make an announcement at an Amazon facility in Brampton, Ont., on Thursday. It's not known what the announcement may entail, but given recent news from the company, it's likely to be jobs-related. Source
  • Snoopy, Peanuts gang, cut loose by MetLife as it retools biz

    Economic CTV News
    Snoopy has been handed the pink slip. After 31 years (almost 170 dog years) as the face of insurance giant MetLife Inc., the company said Thursday that it is launching a new global branding effort, marking the end of a long relationship with Charlie Brown's beagle and the Peanuts crew. Source
  • AltaGas gives green light to North Pine propane plant in northeastern B.C.

    Economic CTV News
    CALGARY -- AltaGas Ltd. (TSX:ALA) has decided to go ahead with construction of a propane extraction plant in northeastern British Columbia that will supply the proposed Ridley Island export terminal near Prince Rupert, B.C. The Calgary-based company says the North Pine processing facility, 40 kilometres northwest of Fort St. Source
  • Energy East pipeline 'will happen,' but taking too long: Arthur Irving

    Economic CTV News
    HALIFAX - The chairman of Irving Oil says the proposed Energy East Pipeline being considered by federal regulators "will happen," but it's taking too long. Arthur Irving says Alberta's struggling economy badly needs the pipeline to sell its fossil fuels, while his firm remains eager to form a partnership with TransCanada (TSC:TRP) to build a deepwater terminal in the Bay of Fundy where tankers can ship the crude to the world. Source