UPDATE 2-COS investors given extra month to assess Suncor bid

Mon Nov 30, 2015 6:23pm EST
 
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* Commission rejects plan to extend bid duration to 120 days

* New deadline is extension of usual 60-day limit

* Lawyer says commission 'met everyone halfway' (Adds comment from Suncor and COS)

By Nia Williams

CALGARY, Alberta, Nov 30 (Reuters) - Canadian Oil Sands shareholders will have an extra month to consider a hostile takeover bid from Suncor Energy Inc but a plan to extend the deadline to February was rejected on Monday.

The Alberta Securities Commission said shareholders should have until Jan.4, 2016 to decide how to respond to the offer. However, it struck down a plan adopted by Canadian Oil Sands in October that extended the period for bids to be considered to 120 days from the original 60-day time frame.

"The commission met everyone halfway," said Bradley Freelan, a partner with Fasken Martineau and an expert on hostile bids.

Canadian Oil Sands adopted the new shareholder rights plan, also known as a poison pill, two days after Suncor made its unsolicited all-stock offer in early October.

The plan was seen as a stalling tactic to enable other bids to be assessed in the hope that a "white knight" bidder emerged.   Continued...