Suncor hits back against COS board, says offer reflects “new business reality”
Battle for shareholder support continues as Suncor fires back
CALGARY—Suncor Energy Inc. is going back to the drawing board and rehashing its offer for Canadian Oil Sands Ltd. just yet. Canada’s largest energy company is instead outlining the merits of its $4.3 billion offer, refuting some of the claims the COS board made Oct. 19.
“We encourage Canadian Oil Sands shareholders to determine for themselves whether our offer is in their best interests,” Steve Williams, Suncor’s president and CEO, said. “There is nothing in the COS Directors’ Circular nor in the conference call comments this morning that detract from the strength of our compelling offer.”
“Our offer reflects the new business reality, and when proposed, included a substantial price premium of 43 per cent and a dividend increase of 45 per cent. It also represents an opportunity for investment in a financially stronger, more diversified and stable company that has considerable upside potential in a rising price environment, but can also deliver significant value should oil prices stay lower for longer,” he added.
Suncor said its track record is superior to COS’, noting a five-year return to Oct. 2 of 15 per cent, compared to COS’ 69 per cent loss.
Meanwhile, the company also said COS “relies on hopes for a near-term oil price recovery,” while Suncor is “highly-levered” to a rising oil price.
The company pointed to its consistent dividend, its share buybacks and its production growth as strong indications of stability as well.