Commenting on its decision to extend the offer for shareholders of Canadian Oil Sands Ltd. (COS) from January 8 to January 27, Suncor Energy provided some perspective. “We are encouraged by the number of shares that have been tendered,” said Steve Williams, president and CEO, Suncor Energy. “We believe strongly in the value of the offer for COS shareholders, including a large premium to the pre-offer price, a 45% dividend increase and the benefit of owning shares in Suncor... We have decided to extend the offer in order to allow shareholders to continue to tender to the offer.”
COS believes the Suncor’s C$4.5 billion unsolicited bid for the company is too low and it is urging its shareholders not to tender stock. The company said that shareholders have overwhelming rejected Suncor’s “opportunistic hostile bid.”
COS also believes Suncor is obliged to disclose the actual tender results. “Our board has heard the message Canadian Oil Sands shareholders have sent loud and clear in overwhelmingly rejecting Suncor’s hostile bid and the value you place on the assets you own,” said Donald Lowry, chairman of Canadian Oil Sands.