UPDATE 3-Suncor says Canadian Oil bid extension highly improbable

Mon Jan 4, 2016 1:46pm EST
Email This Article |
Share This Article
  • Facebook
  • LinkedIn
  • Twitter
| Print This Article | Single Page
[-] Text [+]

(Recasts with Suncor CEO comments)

By Nia Williams

CALGARY, Alberta Jan 4 (Reuters) - Suncor Energy Inc's top executive said on Monday it was "conceivable but highly improbable" that Suncor will extend a C$4.3 billion ($3.08 billion) hostile takeover bid for Canadian Oil Sands Ltd beyond this week's deadline.

Canada's biggest oil producer launched a bid for Canadian Oil Sands in October and last month extended the bid until Friday after the Alberta Securities Commission gave shareholders until Jan. 4 to decide how to respond.

Canadian Oil Sands is the largest-interest owner in Alberta's Syncrude project, the country's largest single-source producer oil producer.

Suncor reiterated its all-stock offer of 0.25 of Suncor share for each Canadian Oil Sands share on Monday, implying a value of C$8.93 per share based on Suncor's Dec. 31 close.

Chief Executive Steve Williams said in an interview that the process had been going on too long and Suncor would walk away if not enough shares were tendered by the end of the week.

"We can only invest so much time and money in this effort and will feel compelled to move on to other opportunities if we don't see substantial support for our bid on Friday," he said.

Suncor is looking at other asset purchase opportunities in regions where it already has operations such as the oil sands, offshore eastern Canada and the North Sea, Williams added.   Continued...