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

  • Asian shares meander as central banks keep monetary policy steady

    Economic CTV News
    TOKYO - Asian shares were mixed Friday in muted trading after the European Central Bank announced no changes to its stimulus policies. KEEPING SCORE: Japan's benchmark Nikkei 225 slipped 0.2 per cent to 20,109.57 while Australia's S&P/ASX 200 lost 0.2 per cent to 5,750.70. Source
  • First Nation opposes proposed powerline project in New Hampshire

    Economic CTV News
    CONCORD, N.H. -- Supporters of a controversial project that would bring Canadian hydro power to markets in southern New England like to talk about how this would use much cleaner energy than the coal-fired power plants that once dominated the region. Source
  • NEB to reconsider B.C. natural gas pipeline jurisdiction: judge rules

    Economic CTV News
    VANCOUVER -- A Federal Court of Appeal judge has ruled the National Energy Board must reconsider whether a proposed TransCanada Corp. (TSX:TRP) natural gas pipeline in B.C. falls under provincial or federal jurisdiction. "The board did not ask itself whether an arguable case for federal jurisdiction had been made out," wrote judge Donald J. Source
  • U.S. says ban on laptops in airplane cabins has been lifted

    Economic CTV News
    DALLAS -- The ban on laptops in the cabins of planes flying from the Middle East to the U.S. is over, as federal officials say that large airports in the region have taken other steps to increase security. Source
  • McDonald's adds Big Mac onesie, sweats to items it delivers

    Economic CTV News
    OAK BROOK, Ill. -- With McDonald's now offering a delivery service, the fast food giant is looking to make customers comfortable eating at home with a new clothing line that includes an adult-size Big Mac onesie. Source
  • Observers temper expectations for Sears liquidation deals

    Economic CTV News
    TORONTO -- Dozens of Sears stores slated for closure begin liquidation sales Friday, but bargain hunters would be wise to temper their expectations, say industry experts. Eager to avoid bankruptcy, the one-time retail giant is counting on hordes of shoppers to scoop up discounted merchandise, fixtures and equipment as soon as possible. Source
  • Price shock: Fraser report shows Ontario hydro prices surging at twice national average

    Economic CTV News
    Ontario energy prices have skyrocketed significantly higher and faster than the rest of the country over the last nine years, with Torontonians paying twice the national average, according to a report from the right-leaning Fraser Institute. Source
  • Exxon Mobil fined $2M US for Tillerson-era breach of Russia sanctions

    Economic CBC News
    The Treasury Department hit Exxon Mobil Corp. with a $2 million fine Thursday for violating Russia sanctions while Secretary of State Rex Tillerson was the oil company's CEO. Treasury said in a statement that Exxon under Tillerson's leadership had shown "reckless disregard" for sanctions that the Obama administration imposed on Russian entities in 2014 over Russia's annexation of Crimea. Source
  • Rogers Q2 net income rises 35%, beats analyst estimate

    Economic CBC News
    Rogers Communications reported a 35 per cent increase in second-quarter net income on Thursday, beating analyst estimates with an especially strong performance from its key wireless division. It's the first financial report issued by the Toronto-based telecommunications and media company on Joe Natale's watch since he became its CEO in April. Source
  • Supreme Court won't hear appeal from former Nortel employee over benefits

    Economic CTV News
    OTTAWA -- The Supreme Court won't hear an appeal from a former Nortel employee who claimed her charter rights were violated over the issue of disability payments. The employee had argued that the 2015 agreement reached on how disability benefits would be paid out in the wake of Nortel's bankruptcy was unfair and unreasonable. Source