CALGARY—Investors in Canada’s oilsands finally had some welcome news Oct. 5, as Suncor Energy Inc. launched the region’s first major takeover bid since the price of crude began sliding more than a year ago.
In response to the $4.3 billion takeover bid, Canadian Oil Sands Ltd. shares closed at over $9.50 Monday, up 55 per cent from their Friday close. COS is the largest partner in northern Alberta’s Syncrude oilsands development, while Suncor is Canada’s largest energy company.
As investors await developments, COS’ management has launched a review of the offer.
“The Board of Directors of Canadian Oil Sands together with its advisors will review the Suncor offer and related take-over bid circular and will communicate a recommendation to shareholders as soon as possible,” COS said. The company noted it will consult with a number of financial advisers on the deal.
Canadian Oil Sands urged shareholders not “to take any action or make any decision with regard to the Suncor offer until the board has had an opportunity to fully review the Suncor offer and to make a recommendation as to its merits.”
As major stakeholders mull the offer, which some dismissed as insultingly low, the takeover offer could potentially open the bidding on a range of players across Canada’s energy landscape, spurring a flurry of offers as oil prices continue to weigh on producers.