Suncor Doesn't Rule Out Raising Bid for Canadian Oil Sands
04 Janvier 2016 - 10:10PM
Dow Jones News
CALGARY, Alberta—Canada's largest oil producer hasn't ruled out
increasing its offer to buy rival Canadian Oil Sands Ltd., Suncor
Energy Inc.'s chief executive said Monday, just days ahead of a
self-imposed deadline for a takeover deal.
Canadian Oil Sands shareholders have until Friday to accept
Suncor's offer of 0.25 of a share for each share of the oil-sands
producer, a deal currently valued at about 4.28 billion Canadian
dollars ($3.09 billion). Suncor so far has resisted requests to
sweeten its bid, which Canadian Oil Sands' board and at least one
large institutional shareholder have repeatedly rejected as
inadequate.
Suncor Chief Executive Steve Williams said the offer remains
fair, especially since crude-oil prices have continued to fall
after making its bid in early October, but indicated Suncor hasn't
completely shut the door on additional incentives to win over more
shareholders.
"It's highly improbable (but) I wouldn't rule anything
completely in or out," Mr. Williams said in an interview.
Canadian Oil Sands, the largest owner of the giant Syncrude oil
sands mining consortium, issued a statement on Monday calling
Suncor's offer "substantially undervalued" and asking shareholders
to allow it to remain an independent company.
Canadian billionaire Seymour Schulich, who owns a 5.2% stake in
the company, has said he strongly opposes Suncor's bid.
Suncor has said it would consider the bid successful with at
least two-thirds of Canadian Oil Sands' shares tendered. Mr.
Williams said a deal might proceed with slightly less than that
level of support, but that Suncor's offer would lapse if it can't
take full ownership.
"Part of my work over the weekend is going to be sitting down
with the team and deciding whether we've got above the number, or
close enough to the number, that we are fully confident we can
close the deal," he said.
The executive said he expects to announce early next week
whether or not the company will proceed with the buyout of Canadian
Oil Sands.
Suncor originally said its offer would expire in early December,
but the Alberta Securities Commission ruled last month—immediately
before the deadline—that Suncor must extend it through at least
Jan. 4 to allow shareholders more time to vet the bid and consider
any other competing offers. Suncor then said it would accept shares
until Jan. 8.
So far no rival bids have been disclosed to the public, but
documents filed to the Alberta securities regulator in support of
Canadian Oil Sands indicated that four "highly credible parties"
had expressed interest in the company as of mid-November.
Suncor seeks to consolidate its position in the Syncrude joint
venture by taking over Canadian Oil Sands' 36.7% stake. Suncor
currently owns 12% of Syncrude. Exxon Mobil Corp. controls a 25%
stake through its Canadian subsidiary Imperial Oil Ltd., which is
the primary operator of Syncrude's oil-sands mines in northern
Alberta.
Mr. Williams said he doesn't anticipate any friction with Exxon
over Syncrude's operations if Suncor succeeds in its bid. "We will
work very closely with them to bring our knowledge to bear, and I
think we can help them," he said.
Write to Chester Dawson at chester.dawson@wsj.com
(END) Dow Jones Newswires
January 04, 2016 15:55 ET (20:55 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Exxon Mobil (NYSE:XOM)
Graphique Historique de l'Action
De Juin 2024 à Juil 2024
Exxon Mobil (NYSE:XOM)
Graphique Historique de l'Action
De Juil 2023 à Juil 2024