Oct. 5, 2015, 7:45 PM
- Suncor Energy's (NYSE:SU) C$4.3B hostile takeover bid for Canadian Oil Sands (OTCQX:COSWF) is "not a low-ball offer, it’s a no-ball offer,” according to billionaire Seymour Schulich, who owns 25M shares, or 5%, of the company and says he is not selling at the offer price.
- Schulich says SU's proposal is worth less than half the replacement value of the Syncrude Canada joint venture, of which COSWF owns 37%, and that Imperial Oil (NYSEMKT:IMO) recently built the Kearl oil sands project at a cost of $13B, which produces lower-grade oil than the Syncrude project.
- Analysts are split on whether the deal was a good one for COSWF shareholders; National Bank Financial's Kyle Preston calls the bid “a positive deal" and raises the possibility that IMO, along with parent company Exxon Mobil (NYSE:XOM), could launch a competing bid, but Barclays’ Paul Cheng, among others, does not believe IMO will make a bid.
- Earlier: Reuters: Canadian Oil Sands to reject Suncor bid, unlikely to engage
Apr. 14, 2015, 12:58 PM
- Canadian Oil Sands (OTCQX:COSWF +5.5%), the company with the largest stake in oil sands miner Syncrude Canada, is a prime takeover target and its most likely suitor is Imperial Oil (IMO +1.9%), the company with the second-largest stake, says FirstEnergy Capital analyst Michael Dunn.
- The analyst says his report is partly based on recent investor meetings with senior IMO execs who believe now is a good time to consider making acquisitions.
- Dunn thinks IMO would not want to pay more than a price in the low teens for COSWF, so its stock would have to fall further to make a bid attractive, and he suggests the company would not want to take on excessive debt - which could mean an equity-based offer, help from its controlling shareholder, Exxon Mobil (NYSE:XOM), or enrolling a current Syncrude partner such as Suncor (NYSE:SU).
Feb. 2, 2015, 6:24 PM
- Canadian Oil Sands (OTCQX:COSWF) jumped 20% today in Toronto on rumors it could be a takeover target by one of its partners in Syncrude Canada.
- Canadian Oil Sands is the largest shareholder in Syncrude, with a 37% stake, but larger companies such as Imperial Oil (NYSEMKT:IMO) also own major stakes in the venture; the rumors appeared to take flight as IMO parent company Exxon Mobil (NYSE:XOM) signaled today that it would be acquisitive in the current low oil price environment.
- FirstEnergy Capital analyst Michael Dunn says a Canadian Oil Sands “takeout by another Syncrude partner is a distinct possibility should the shares continue to languish."
Aug. 8, 2013, 8:12 AM
- ConocoPhillips (COP) agrees to sell its 100% interest in the 226K-acre Clyden oil sands leasehold to Imperial Oil (IMO) and ExxonMobil (XOM) for ~$720M.
- Clyden is located near the southern edge of the Athabasca oil sands and south of Fort McMurray, Alberta.
- COP expects to record a ~$450M after-tax gain, which will be recognized upon closing anticipated later in Q3.
- Including this deal, COP has announced expected proceeds of ~$13.5B from the sale of non-strategic assets as part of its 2012-13 asset disposition program.
Nov. 28, 2012, 9:19 AMImperial Oil (IMO) is spending $1.5B to buy into ExxonMobil’s (XOM) acquisition of fellow Canadian player Celtic Exploration (CEXJF.PK), gaining a 50% stake to complete the earlier transaction where XOM agreed to buy Celtic outright for ~$2.6B. The pair will gain access to 545K net acres in the liquids-rich Montney shale and 104K net acres in the Duvernay shale via the Celtic takeover. | Nov. 28, 2012, 9:19 AM