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Mon, Feb. 8, 2:43 PM
- Canadian Oil Sands (OTCQX:COSWF -1.2%), preparing to be taken over by Suncor Energy (SU -1.6%), is overhauling its senior leadership team and board of directors.
- In as the new CEO is Sandy Martin, SU's VP of strategy and commercial development; out are Ryan Kubik, who was CEO during the takeover fight, and Donald Lowry, who was chairman during the period.
- New Chairman Harry Roberts was a senior VP at SU before his retirement in 2010, and the four other directors also are connected to the acquirer.
Mon, Feb. 8, 10:15 AM
- Suncor Energy (SU -3.4%) says nearly 73% of Canadian Oil Sands (OTCQX:COSWF -3.5%) shares and accompanying rights have been tendered to its C$4.2B takeover offer.
- SU says that as a result, it will be able to ensure that the deal will be completed and it will acquire the remainder of the outstanding COS shares.
- SU succeeded in winning over resistant COS management and shareholders after sweetening its offer last month.
Fri, Jan. 8, 10:49 AM
- Suncor Energy (SU +0.7%) likely would weigh its options over the weekend if it fails to convince enough Canadian Oil Sands (OTCQX:COSWF -3.4%) shareholders to accept its C$4.3B takeover offer which is set to expire tonight, Financial Post reports.
- SU must secure 50% of independent shareholders, which would blunt COSWF’s poison pill; the company then could extend the offer and squeeze out minority shareholders by calling a meeting, and Toronto-based lawyer Paul Davis of McMillan LLP believes CEO Steve Williams’ comments suggest SU would extend its offer if Williams feels the deal is close.
- COSWF shares have been volatile over the past few days and now trade made than $1 lower than SU's offer of C$8.82; “I would take from that people expect it [Suncor’s bid] would fail,” says Bill Gula, M&A lawyer at Hansell LLP in Toronto.
Thu, Jan. 7, 12:49 PM
- Suncor Energy’s (SU -2.1%) $4.3B takeover of Canadian Oil Sands (OTCQX:COSWF +1.3%) looks far from certain, with the target’s share price trading at a record gap to the bid just a day before expiring.
- COSWF closed yesterday at $7.47 in Toronto, putting SU’s $8.52/share offer at a record 14.1% premium since the deal was announced on Oct. 5.
- The market "seems to be pricing in a reasonably high probability it doesn’t happen, [which] reflects the fact that the market is concerned about the downside risk here if it doesn’t go ahead,” BMO Capital's Randy Ollenberger says.
- Shareholders against the deal, including Seymour Schulich, have been vocal in their opposition in claiming SU is making a low-ball offer, heightening speculation about how many shareholders agree with them.
- Others say SU ultimately will prevail, including Samara Fund president Ben Cubitt, who says “if this bid goes away, it trades probably at $5... These guys, I assume, have canvassed the world for someone willing to pay something more and haven’t found anyone. So it is impossible to argue that at this moment in time it is worth more.”
Mon, Jan. 4, 3:59 PM
- Suncor Energy (SU -1.9%) CEO Steve Williams says his company has not ruled out increasing its offer to buy Canadian Oil Sands (OTCQX:COSWF -5%), just days before a self-imposed January 8 deadline for a takeover deal.
- The CEO tells Dow Jones that SU's offer of 0.25 of a share for each COSWF share, a deal currently valued at ~C$4.28B ($3.09B) remains fair, especially since crude oil prices have continued to fall after making its bid in early October, but "I wouldn’t rule anything completely in or out" on additional incentives to win over more shareholders.
- Williams says he expects to announce early next week whether or not the company will proceed with the buyout.
- Earlier: Canadian Oil Sands plans to remain independent after Suncor bid
- Earlier: Schulich says he plans to hold Canadian Oil Sands shares in Suncor bid
Mon, Jan. 4, 12:23 PM
- Investor Seymour Schulich says he will not tender his shares to Suncor Energy (SU -2.5%) in its C$4.3B ($3.1B) hostile bid for Canadian Oil Sands (OTCQX:COSWF -5.3%), preferring to hold on to his shares and wait for a rebound in crude oil.
- "Everybody I have talked to thinks the offer is too low,” says Schulich, who says he owns 5% of COSWF, making him one of the company's biggest shareholders.
- SU has offered 0.25 of its own shares for each COSWF share in the offer worth ~C$8.93/share, a 44% premium to COSWF's pre-bid trading price.
Dec. 15, 2015, 10:52 AM
- "Hope is still not a strategy," Suncor (SU +1.2%) says as it urges Canadian Oil Sands (OTCQX:COSWF +2.6%) shareholders to tender their shares to its offer for the company.
- In a letter to COSWF shareholders, SU highlights the premium it is offering and warns that the share price likely would drop "sharply" if its bid is rejected.
- "Your Board is telling you that COS will be better off continuing as a standalone company," the letter says. "What they aren't telling you is that in this environment, it could take as long as 10 years before COS would have enough cash flow to fix its balance sheet and reinstate a significant dividend."
Nov. 18, 2015, 11:49 AM
- Suncor Energy (SU -4.3%) is downgraded to Hold from Buy with a price target of C$43 at TD Securities following the company's disappointing 2016 guidance.
- Despite SU's strong structural advantages in this market, the firm says its downward adjustments to its 2016 estimates after the company's update precipitate the downgrade.
- TD says SU's relative value suggest it is now the most expensive large-cap on a price/NAV basis, and recent share price outperformance has resulted in the highest total return of any large-cap since the beginning of the oil price rout.
Nov. 18, 2015, 10:27 AM
- Suncor Energy (SU -3.2%) opens sharply lower after announcing a larger capital budget for 2016 even as it forecasts lower production volumes.
- SU says it plans to boost capital spending to as much as C$7.3B (US$5.5B) next year, an increase from ~C$6.3B this year; SU says the program is flexible, within a range starting at C$6.7B, to respond quickly to any further deterioration in market conditions.
- SU sees 2016 production of 525K-565K bbl/day, below earlier guidance of 540K-580K bbl/day for the current year, citing scheduled maintenance at its oil sands plants for the reduction.
- Oil sands production is expected to total 400K-425K bbl/day, not including an additional 30K-35K bbl/day from its interest in Syncrude; the range is below this year’s estimate for oil sands output of 410K-440K bbl/day, not including 32K-36K bbl/day from Syncrude.
- As a result of cost-cutting efforts, SU says its oil sands cash operating costs would fall to C$27-C$30/bbl next year, below the C$28-C$31 it projects for this year.
Nov. 16, 2015, 7:46 AM
- The latest 13F from Berkshire Hathaway (BRK.A, BRK.B) shows a new 59.3M share stake in AT&T (NYSE:T), and the GM stake taken up to 50M shares from 41M. At least part, if not all of the T stake is the result of shares received in the DirecTV merger.
- Phillips 66 (NYSE:PSX) is up to 61.5M shares from about 30M; Kraft Heinz (NASDAQ:KHC) 325.6M shares from zero; Suncor (NYSE:SU) 30M shares from 23.3M, John Malone (LMCK, LMCA) a total of about 24M shares from about 13M.
- Buffett trimmed his Wal-Mart (NYSE:WMT) position to 56.2M shares from 58.3M.
- AT&T +1.4% premarket
Oct. 21, 2015, 2:38 PM
- Analysts now expect Suncor Energy (SU -1.2%) to increase its hostile takeover bid for Canadian Oil Sands (OTCQX:COSWF -1.9%), with several increasing their price target for COSWF shares to reflect a higher value than the $8.65/share SU offered when it took its deal directly to shareholders on Oct. 5.
- FirstEnergy Capital analyst Michael Dunn says SU "very likely" would extend a higher bid, raising his price target on COSWF to $11.85, roughly the price SU had offered privately in the spring.
- Dunn thinks Syncrude’s Lease 29 is more valuable to SU than it is saying, but that is not critical to SU’s future.
- Barclays raised its price target on COSWF to $10 following the target company's rejection.
Oct. 19, 2015, 3:45 PM
- Canadian Oil Sands (OTCQX:COSWF -2.7%) expects strong interest from other suitors following its rejection of Suncor Energy's (SU -2.6%) hostile takeover bid, CEO Ryan Kubik tells Reuters.
- "There's interest from a broad range of buyers... whether it be private equity, whether it be pension funds, or international oil companies," Kubik says while adding that COSWF has not yet been approached with any other offers.
- The CEO tells Bloomberg that several groups would have an interest in COSWF because the company has managed to cut costs and sustain cash flows even with U.S. oil at less than $50/bbl.
Oct. 15, 2015, 11:58 AM
- Suncor Energy’s (SU -1.1%) offer to buy Canadian Oil Sands (OTCQX:COSWF -2%) is "ill advised" because of low oil prices and the potential for further share price declines, Venator Capital's Brandon Osten tells Bloomberg.
- Any purchase of Canadian Oil Sands needs $70/bbl oil, Osten says; his hedge fund has shorted SU since Q1.
- Osten expects Exxon Mobil affiliate Imperial Oil - Syncrude’s second largest owner behind COSWF - to make a counter-offer with either cash or shares, but "either way, I think Canadian Oil Sands gets taken over in the next six months.”
Oct. 12, 2015, 3:45 PM
- Barclays maintains a Neutral rating on the group of 10 Americas-based oil majors, expecting the group to miss consensus expectations in the light of lower crude oil and gas prices, while it reduces the ratings and price targets of several of the companies.
- Although the refining companies have benefited from a modest widening of the key North American crude differentials and stronger product cracks, the firm says higher operating costs and lower than expected margin capture rate at several refiners due to unplanned outages have partially offset these benefits.
- Barclays downgrades Petrobras (PBR -3.7%) to Equal Weight from Overweight, as the company’s unsustainable levels of debt, cash flow outlook and concerns surrounding the corruption investigation cannot be ignored even as shares appear attractively valued; Imperial Oil (IMO -2.1%) also is cut to Equal Weight from Overweight.
- The firm maintains Suncor Energy (SU -0.5%) and Husky Energy (OTCPK:HUSKF -1.9%) at Overweight, saying the two stocks offer the best value over the next 12 months on a risk-adjusted basis, while maintaining Chevron (CVX -0.9%), Hess (HES -2.8%) and Murphy Oil (MUR -3.2%) with Equal weight ratings; it cuts price targets slightly for all five companies.
- Earlier: Exxon upgraded to Equal Weight at Barclays
Oct. 7, 2015, 10:26 AM
- Canadian Oil Sands (OTCQX:COSWF +1.4%) adopts a poison pill takeover defense calling for 120 days to consider offers, two days after Suncor Energy (SU +2.7%) launched a hostile bid for the company.
- The rights plan, which is in addition to one already in place, would be triggered upon the purchase of 20% or more of the company’s shares outstanding by any person.
- COSWF says the shareholder rights plan is meant to give its shareholders and board adequate time to evaluate SU’s C$4.3B ($3.3B) all-stock offer and any other unsolicited bid or strategic options.
- SU expected its bid to be rejected initially and would work to win over shareholders in several meetings, CEO Steve Williams told Bloomberg yesterday.
Oct. 5, 2015, 3:58 PM
- Canadian Oil Sands (OTCQX:COSWF +55%) is prepared to reject the hostile takeover bid made by Suncor Energy (SU -1.6%) and is unlikely to engage with SU on the basis of the current proposal, Reuters reports.
- Earlier this afternoon, COSWF said it was reviewing the offer and asked shareholders to wait until it has time to respond.
- SU earlier today shook up Canada's oil industry by forwarding an all-stock offer for COSWF, which owns a large stake in Canada's Syncrude project in Alberta.
- "Maybe Suncor comes back with a small sweetener, to maybe save some face and make it look a little bit better, but I don't know if they even need to do that," says 3Macs energy analyst Robert Mark, adding that "my guess is that this deal gets done at the current price."
Suncor Energy Inc is an integrated energy company. Its operations include developing petroleum resource basin, Canada's Athabasca oil sands. It explores for, acquires, develops, produces & markets crude oil & natural gas in Canada and internationally.
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