Suncor calls Canadian Oil Sands’ poison pill ‘inappropriate’
Suncor said it was disappointed after Canadian Oil Sands after it adopted a adopted a shareholder rights plan to defend itself from Suncor’s unsolicited $4.3 billion takeover offer on Monday.
“We’re disappointed but not surprised by COS board’s decision to adopt a new, board-approved shareholder rights plan in the face of our offer. This inappropriate defensive tactic limits the ability of COS shareholders to decide,” said Suncor CEO Steve Williams in a statement.
“When we presented our full and fair offer on Monday, it was a permitted bid and the rights plan in place was a COS shareholder-approved plan. With a 43 per cent premium to market price and investment in a company that has a strong track record of returning cash to shareholders, we’re confident in the value our offer provides to COS shareholders.”
Canadian Oil Sands is up 48% since Suncor’s bid was announced.
Canadian Oil Sands has a 36.74% stake in Syncrude. Suncor’s position is only 12%.
If Suncor’s bid for COS was to be successful, the company would have the largest stake of seven current joint partners that own Syncrude.