Suncor hopes to raise bid for Canadian Oil Sands -WSJ

Sun Jan 17, 2016 8:32pm EST
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NEW YORK Jan 17 (Reuters) - Suncor Energy Inc is working to raise its all-stock offer for rival Canadian Oil Sands Ltd and a deal could be announced as early as Monday, the Wall Street Journal said, citing a source familiar with the situation.

The two Canadian companies have been working on a revised bid since Friday, the Wall Street Journal said on Sunday, citing the source, who said talks were still ongoing.

Terms of the potential revised offer could not be learned, the newspaper said.

Suncor is offering Canadian Oil Sands shareholders 0.25 of a Suncor share for each COS share they hold, valuing the target company at C$4.03 billion ($2.84 billion).

At the beginning of last week Suncor had received more than 40 percent of the votes in favor of its bid for Canadian Oil Sands, a source familiar with the situation told Reuters.

The extension of the bid indicated Suncor is confident that it can swing the rest of the votes in its favor. It was not clear, though, if it can do so without increasing the bid, Reuters said last week.

Suncor bid for Canadian Oil Sands in October and later extended the bid until Jan. 8. Suncor said on Friday it has extended its hostile bid for Canadian Oil Sands until Jan. 27.

Canadian Oil Sands has a 36.7 percent stake in Syncrude, the oil-sands mining consortium in northern Alberta that is Canada's largest single source of crude oil.

(Reporting by Herbert Lash; Editing by Chris Reese)