Reject Suncor, Seymour Schulich tells Canadian Oil Sands shareholders

CALGARY -- A prominent Canadian businessman has taken out full-page newspaper ads to declare his opposition to Suncor Energy's proposed hostile takeover of Canadian Oil Sands.

See Full Article

The ads placed by Seymour Schulich say Suncor (TSX:SU) has a lot to gain from acquiring Canadian Oil Sands (TSX:COS) and he believes there's evidence that Suncor is willing to pay more than it has offered.

"The fact is Suncor needs Canadian Oil Sands more than we need them . . . I'm not selling at this price and you shouldn't either," the open letter concludes.

The ads are published in the Tuesday business sections of The Globe and Mail and the National Post newspapers and appear as the two Calgary-based oilsands companies woo shareholders ahead of a of a Friday deadline set by Suncor.

Suncor said Monday that it will move on to other opportunities if, by Friday evening, it does not receive "substantial support" for its $4.3-billion, all-stock offer. It has also scheduled a Tuesday morning briefing for investors.

Meanwhile, COS issued what it called a "declaration of independence," reiterating its view that shareholders are better off in the long run if the company continues on in its current form, despite continued weakness in crude prices.

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

COS's main asset is its Syncrude stake, whereas Suncor (TSX:SU) is one of Canada's biggest energy names, with vast operations in the oilsands and a host of other refining and offshore holdings.

In an interview Monday, Suncor CEO Steve Williams said the prospects of a sweetened offer are "very low," noting ongoing operational glitches at Syncrude and a deterioration in crude prices since Suncor first took its offer to straight to shareholders in October -- from close to US$50 a barrel then to below US$40 a barrel now.

"If we were going to be making the bid today, it would not be at this level," Williams said.

Schulich, who describes himself in the ad as a chartered financial analyst specializing in oil and gas, has become a prominent name in Canada because his success as an investor.

Among the public institutions that bear his name is the Schulich School of Business at York University in Toronto, the Schulich School of Medicine and Dentistry at Western University in London, Ont., and the Schulich Heart Centre at Sunnybrook Hospital in Toronto.



Advertisements

Latest Economic News

  • L.L. Bean boosts production of iconic boot

    Economic CTV News
    LEWISTON, Maine -- L.L. Bean hopes to give the boot to backlogs of its most iconic product. The Maine-based retailer is expanding production to keep up with demand for its leather-and-rubber "duck boot" with a new manufacturing centre with another machine used to make the rubber soles. Source
  • Canadian manufacturing sales fall 1.8 per cent in June, breaking winning streak

    Economic CTV News
    OTTAWA -- Canadian manufacturing sales fell in June following three consecutive months of gains, with declines led by the petroleum and coal industry. Manufacturing sales slipped 1.8 per cent overall to $53.9 billion in June, Statistics Canada said Thursday in a monthly report. Source
  • EpiPen settlement reached in U.S. for $465M

    Economic CBC News
    Mylan NV has finalized a $465 million US settlement with the U.S. Justice Department, resolving claims it overcharged the government for its EpiPen emergency allergy treatment, which became the centre of a firestorm over price increases. Source
  • Canadian U Box It wins u-u-uge trademark battle over American U-Haul

    Economic CTV News
    OTTAWA -- A family-owned Canadian garbage business is claiming victory over huge American moving company U-Haul International in a David-versus-Goliath battle involving whose U-themed brands deserve trademark protection in Canada. The Federal Court of Appeal has upheld a lower court ruling denying U-Haul two trademarks because they too closely resemble the brand of U Box It, a small waste management services company in the Greater Toronto Area. Source
  • Canadian subsidiary of French defence giant gets $5.2 billion contract

    Economic CTV News
    OTTAWA -- The Canadian subsidiary of French defence giant Thales has been awarded a multibillion-dollar contract to service Canada's new fleet of Arctic offshore patrol ships and joint support vessels. The federal government says Thales Canada, in a joint venture with the company's Australian arm, will provide in-service support for the vessels under a contract that could total $5.2 billion over 35 years. Source
  • Manufacturing sales fall in June after 3 straight monthly gains

    Economic CBC News
    An assembly worker Chrysler's Windsor assembly plant is shown. Statistics Canada reported Thursday that manufacturing sales fell in June, after three months in a row of gains. (Reuters) Statistics Canada says manufacturing sales fell in June, following three consecutive months of gains. Source
  • Train or fire? Bosses grapple with how to handle off-hours transgressions

    Economic CTV News
    TORONTO -- It didn't take long for social media to reveal the identities of some of the participants of a racially charged protest in Charlottesville, Va., last weekend. But it wasn't just individuals who were outed by outraged critics -- it was companies, brands and even suspected employers of individual protesters who were suddenly put on notice that the world was watching. Source
  • Why autos are such an important part of NAFTA

    Economic CTV News
    TORONTO - The future of Canada's more than one million automotive jobs has emerged as a critical part of what's at stake at the NAFTA renegotiation table in Washington after the U.S. chief negotiator targeted the sector on the first day of talks Wednesday. Source
  • Where does the CIBC-PC Financial breakup leave consumers?

    Economic CBC News
    CIBC and President's Choice Financial are amicably breaking up a 20-year banking marriage and divvying up the assets — news one financial expert says isn't necessarily a good or bad thing for consumers. In a nutshell, President's Choice Financial will keep the PC Financial MasterCard credit card service and the PC Plus loyalty program, while the two million PC Financial banking customers will move to CIBC's new service called Simplii Financial. Source
  • Good chance of Pacific trade deal being reached: New Zealand lawmaker

    Economic CTV News
    WELLINGTON, New Zealand -- New Zealand’s trade minister said Thursday he believes there’s an odds-on chance that a group of 11 Pacific nations including Japan and Australia will sign a free-trade deal, despite the U.S. Source