Suncor Energy Inc.’s move to take over Canadian Oil Sands Ltd. is coming down to the wire with both sides urging the target’s shareholders to consider their long-term interests as oil trades near a six-year low.
Suncor’s offer of 0.25 share for each of Canadian Oil Sands’ expires on Jan. 8 and the company has said it may walk away from the C$4.3 billion ($3.1 billion) bid if the shareholders turn it down. Suncor needs 67 percent of the target’s shares to be tendered for the deal to go ahead.
“All the way through we’ve been getting a very different message from shareholders than the one Canadian Oil Sands have been talking to,” Suncor Chief Executive Officer Steve Williams said Monday in an interview. “The message we’ve got is that Canadian Oil Sands shareholders do not support an independent Canadian Oil Sands.”