Suncor’s bid likely to be rejected
Posted Oct 19, 2015 7:13 am.
This article is more than 5 years old.
Canadian Oil Sands Ltd. is fighting back against a hostile takeover bid by Suncor.
The board of directors is recommending its shareholders reject the Suncor offer which they call undervalued, opportunistic, and exploitive.
In a letter to shareholders the board outlines 15 reasons why the offer falls short, saying Suncor doesn’t account for cost superior leverage to oil prices, and that the bid doesn’t reflect any possible increase in oil prices.
The letter also states the board and management won’t tender to the Suncor bid, nor will major shareholders.
To reject the Suncor bid, they say shareholders should simply take no action.
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