This news is classified in: Traditional Energy Oil and Gas
Nov 6, 2015
Canadian Oil Sands Limited announces it will continue to defend shareholders and the protections put in place in its Shareholder Rights Plan in response to Suncor Energy Inc.'s ("Suncor") hostile take-over bid.
In light of the imbalance of information between Suncor on the one hand and COS shareholders and other potential bidders on the other, the Shareholder Rights Plan provides the Board with the time and flexibility needed to act in the best interests of shareholders and maximize value.
"Suncor has made a bid that is substantially undervalued, obviously opportunistic, and exploitive. Now it is trying to force COS shareholders to act in haste and against their best interests before the market and shareholders have access to the same information Suncor has about Syncrude," said Donald Lowry, Chairman of Canadian Oil Sands. "Our shareholders have told us they are against this substantially undervalued bid and that the timeframe of our Rights Plan is appropriate and fair to them."
Focus on Application, Solution, Process, and Region
Download free sample pagesSuncor's decision to challenge the Shareholder Rights Plan further reinforces the self-interested, opportunistic nature of their hostile bid on the following basis:
Ryan Kubik, CEO of Canadian Oil Sands added: "Make no mistake, we will defend our shareholders' rights. Suncor's application is simply a smokescreen intended to obscure the weakness of its offer and its attempt to complete the bid before COS can share important and encouraging information from Syncrude. As an insider of Syncrude, Suncor knows that news is coming. It knows royalty and environmental changes are coming to the industry. It knows changes are coming to takeover regulations. And it knows COS has strategic interests in a valuable asset so it is trying to limit the ability of the COS Board to pursue and consider strategic alternatives for the benefit of COS shareholders."