Suncor bidding for COS, $6.6B

[Xtrema]

http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/suncor-makes-hostile-43-billion-bid-for-canadian-oil-sands/article26648394/

[you&me]

Your move, Imperial.

[Darell_n]

Would the Syncrude unions all get punted out? This could get exciting.

[rob the knob]

doe the chinese own this?

[ZenOps]

It says the $2.3 Billion debt is included.

I wouldn't count debt, as one can always declare bankruptcy and/or find other ways to not payback creditors.

Keep the assets, spin off the losers and debt - close down the losers - socialize losses to the investors - $2.3 Billion debt gone. Donald Trumponomics.

This is why people like IP like "Minecraft" so much, there is no such thing as debt. Arguably it cost half a decade worth of labour of one man at a computer to create $2.5 Billion. There is no such thing as "debt" in that situation, and I'm surprise the Canadian government hasn't tried to encourage it more. Even if those five years worth of work are grossly overvalued and just laundering for US money printing, does it really matter?

[Sugarphreak]

...

[JRSC00LUDE]

Originally posted by rob the knob
doe the chinese own this?

They've got the bucks too.

[Sugarphreak]

...

[JRSC00LUDE]

Originally posted by Sugarphreak

I'd say they are still rich, but neutered at the moment

Oh deer....

[Xtrema]

Originally posted by Darell_n
Would the Syncrude unions all get punted out? This could get exciting.

Not likely, after all plenty of Petro Can staff remains still and this only give Suncor 49% of Syncrude.

Now I wonder if Imperial will sold off Syncrude shares and just go pick up Cenovus before it gets too expensive when acquisitions warms up.

[M.alex]

Suncor has too much money. When will Notley take from them and give to me?

[BavarianBeast]

Originally posted by Sugarphreak
lol @ people piling onto MEG today thinking they are going to get bought out :rofl:

MEG is great compared to COS, why is that funny to you?

[killramos]

Good news for sellers of assets. Could indicate, whether correctly long term or not, the start of the buying for the industry. No one wants to get left holding nothing which should hopefully increase the strength of negotiations.

[Inzane]

Originally posted by Darell_n
Would the Syncrude unions all get punted out? This could get exciting.

What Syncrude unions? Are you referring to misc. contractor companies? As far as I know Syncrude's own work force has never been unionized.

[redmethods]

Originally posted by Inzane


What Syncrude unions? Are you referring to misc. contractor companies? As far as I know Syncrude's own work force has never been unionized.

This, Syncrude don't have a Union. Just Suncor.

[BandW]

Originally posted by M.alex
Suncor has too much money. When will Notley take from them and give to me?

Are you kidding me? ALL money is hard earned in this economy.

:rofl:

[phreezee]

COS rejects the Suncor bid: http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/canadian-oil-sands-rejects-suncors-45-billion-exploitive-hostile-bid/article26866870/

[Feruk]

Meh, that means nothing. The offer was made directly to shareholders, not the board. I suspect Suncor will sweeten the bid a little, but I doubt anyone else is interested. Imperial won't be bidding I don't think.

[schurchill39]

Holy shit. Their letter to the share holders is aggressive as fuck. I guess this is the "hostile" part of the hostile takeover.

http://www.suncor.com/en/newsroom/5441.aspx?id=2010911

[R154]

Originally posted by schurchill39
Holy shit. Their letter to the share holders is aggressive as fuck. I guess this is the "hostile" part of the hostile takeover.

http://www.suncor.com/en/newsroom/5441.aspx?id=2010911

Jesus christ that release is gangster.

"your credit rating is one step above junk... you have until the end of the week to save yourselves"

[BavarianBeast]

:bigpimp:

[Xtrema]

http://www.cbc.ca/news/business/suncor-cos-hostile-rhetiric-1.3371801


"The investors who've held the stock for long periods of time and have already absorbed the losses, they're tough, they have money," said Brendan Wood in an interview.

"They don't need to run to the hills. Their attitude is give me fair value, not because of the rhetoric. They're the reason for the rhetoric."

~$20 to $9 is already more than 50% off. What's another 25% loss at the point and see if it'll come back in 5-6 years.

Suncor is targeting retail investors that need/want to cash out.

[kaput]

.

[spikerS]

Originally posted by kaput
Will Suncor still acquire the shares of those who accept the offer, or is it an all or nothing deal?

sounds like they are willing to buy it all from each investor right now. even if it fails, they will still hold a fair chunk of the shares.

[spikerS]

Originally posted by schurchill39
Holy shit. Their letter to the share holders is aggressive as fuck. I guess this is the "hostile" part of the hostile takeover.

http://www.suncor.com/en/newsroom/5441.aspx?id=2010911

Yeah, that is pretty over the top. I have never seen a letter quite like that by any stretch.

[HiTempguy1]

Originally posted by spikerS


Yeah, that is pretty over the top. I have never seen a letter quite like that by any stretch.

Could have mistaken it for having been written by a Beyonder!

Oh wait, it wasn't signed off with "Govern yourselves accordingly" :rofl:

[killramos]

I found the letter hilarious. If there were any professional bridges between the boards/senior managements of those two companies. You can consider them sufficiently burned after that one.

It was refreshing really.

[viff3r]

That letter needs its own "deal with it" gif.

[Feruk]

I hope COS shareholders are smart enough to take the offer... Otherwise my prediction is they'll be taking a far lower one in a year or two.

[EK 2.0]

Originally posted by JRSC00LUDE


They've got the bucks too.



Originally posted by JRSC00LUDE


Oh deer....


I saw that you were trying to have a little fawn there...;)

[kaput]

.

[spike98]

Originally posted by kaput
I saw a great mobile ad last night from Suncor. It looked like one of those 'you've won a million dollars click here to claim' types, except it was 'click here to tender your shares now'. I'm trying to get it to show up again so I can screen cap it.

Those are showing up on the mini TV's in our elevator :nut:

[you&me]

Originally posted by killramos
I found the letter hilarious. If there were any professional bridges between the boards/senior managements of those two companies. You can consider them sufficiently burned after that one.

It was refreshing really.

Some of the management at COS has been at Suncor in the past, so there's that as far as some familiarity, etc.

The kicker is that Ryan Kubik is not only the President and CEO of COS, but is a director and Chair of the Syncrude Board and also chairs the Syncrude JV and management committees :rofl:

[avishal26]

From the sounds of it, Suncor is threatening that they will start looking elsewhere if COS bid doesn't go through. So I'm not sure if they would buy whatever shares come their way, because if they end up with lets say 40% of COS shares, they will have reduced mobility to look at other alternatives to take-over.

[killramos]

Originally posted by avishal26
From the sounds of it, Suncor is threatening that they will start looking elsewhere if COS bid doesn't go through. So I'm not sure if they would buy whatever shares come their way, because if they end up with lets say 40% of COS shares, they will have reduced mobility to look at other alternatives to take-over.
Look elsewhere to whom? The only reason COS was an option was their stock was so beaten to shit it was a steal and it got them within spitting distance of Syncrude controlling ownership


Syncrude Ownership

(37%) Canadian Oil Sands Partnership
(9%) SINOPEC
(25%) Imperial Oil Resources
(5%) Mocal Energy
(5%) Murphy Oil Company
(7%) Nexen Oil Sands Partnership
(12%) Suncor Energy Ventures Partnership

I don't see Sinopec, Nexen, Imperial, getting out of there any time soon and Mocal ( aka Nippon ) and Murphy wouldn't be going anywhere without a pound of flesh for their pittance ownership.

If you mean elsewhere to the rest of the patch then them and every other flush company in town.

[ZenOps]

I wouldn't worry about an open ended letter written in English.

Until its in real Legalese, its just fodder fearmonger talk. When you see "pursuant" and "actionable" then you start to actually read it.

"tender" is weakspeak for capitulate.

[R154]

Originally posted by ZenOps
I wouldn't worry about an open ended letter written in English.

Until its in real Legalese, its just fodder fearmonger talk. When you see "pursuant" and "actionable" then you start to actually read it.

"tender" is weakspeak for capitulate.

As the years pass I enjoy your posts more & more.

I hope you're in the beyond 15 year video.

[Kloubek]

That letter is over the top. We're talking about a "professional" company takeover here... but it's written like a bully forcing a nerd into handing over his lunch money.

[R154]

It isn't wrong though. I'm not really surprised to see the tone of this letter, now that is has sunk in. They are creating just a little controversy to drive the story in to the limelight a bit.

It worked.

[ExtraSlow]

That letter is factually correct, and if I owned COS stock, I'd be voting for this transaction.

[roopi]

If you own/owned COS stock you should have sold the day the announcement was made of the bid. There is no point in holding stock in a company that has a potential buyer for months for it to close to gain that extra 1-2%. Sell and move your money somewhere else.

I'm sure alot of people held thinking there would be other offers but that's always a gamble.

[dirtsniffer]

Offer extended until Jan 27 due to only receiving 50% of COS shareholder support instead of the required 66%

[killramos]

So what does the COS board think is going to happen now that they have pissed off half the shareholders.

Board - Gone

Senior Management - Gone

Employees? - Likely for the most part Gone to "contract" the work to Suncor employees who would have done the work if the deal actually went through.

In addition the equivalent value of the quarter Suncor shares is 8.31 right now

COS is 7.47.

So if you bought a COS share and immediately tendered it to a quarter Suncor share, and make 84 cents or 11% on the trade instantly?

What's to stop investors to buy a crap ton of COS shares, tender them to Suncor for their Suncor shares. Sell the Suncor Shares. keep repeating to make the differential value?

...

Profit.

I must be missing something here.

[Pacman]

Just because you tender your shares, it doesn't mean Suncor is obligated to take them up.

right now, the tendered shares are sitting in limbo. The shareholder can chose to withdraw their tender if they want but they won't get the offer price until Suncor gets the 66.66% tendered and the deal goes through.

I suppose Suncor could decide to take up whatever amount have been tendered (who knows what percent have been tendered as of yesterday)


Originally posted by killramos


In addition the equivalent value of the quarter Suncor shares is 8.31 right now

COS is 7.47.

So if you bought a COS share and immediately tendered it to a quarter Suncor share, and make 84 cents or 11% on the trade instantly?

What's to stop investors to buy a crap ton of COS shares, tender them to Suncor for their Suncor shares. Sell the Suncor Shares. keep repeating to make the differential value?

...

Profit.

I must be missing something here.

[killramos]

I'm confused now, I thought we had established over the last couple of pages that their tendering process was effective immediately?

Maybe I misunderstood something but I thought Suncor was acquiring the COS shares regardless of the outcome.

Anyone on here actually participate in this offer who can shed some light.

What you are saying makes complete sense pacman, and it is how I assumed the deal would proceed. But I was convinced otherwise?

[16hypen3sp]

Looks like it's over.


Suncor Energy and Canadian Oil Sands have come to terms on a $6.6-billion deal that ends a months-long public battle between the two Calgary-based companies.

Suncor (TSX:SU) has increased how much stock it will pay to buy COS, which had said the previous offer was too low.

Canadian Oil Sands (TSX:COS) shareholders are now being offered 0.28 of a Suncor share — about 12 per cent more than before.

The total price includes $2.4 billion in debt that Suncor will assume.

The companies issued a joint statement saying both boards of directors and major Canadian Oil Sands investor Seymour Schulich are supporting the revised offer.


http://www.cbc.ca/news/business/suncor-canadian-oil-sands-deal-1.3408250

http://www.theglobeandmail.com/report-on-business/industry-news/energy-and-resources/suncor-hikes-bid-for-canadian-oil-sands-gets-66-billion-deal/article28236158/

[RealJimmyJames]

This is good news for the industry, having this hanging over everyone wasn't helpful, and at the very least, suncor should be able to realize some efficiency over time. Hell, as this point, I don't see why they wouldn't be trying to acquire all the other working interest owners in Syncrude. Although, I can't see SINOPEC or CNOOC looking to sell.

[Xtrema]

So who's next? Cenovus?

[Pacman]

Originally posted by Xtrema
So who's next? Cenovus?

Would have to think Cenovus and Encana are targets

[nzwasp]

What does this mean for imperial, if Suncor is now the major shareholder in syncrude?

[403ep3]

Originally posted by Pacman


Would have to think Cenovus and Encana are targets

:drama: :drama:

[Feruk]

Originally posted by RealJimmyJames
Although, I can't see SINOPEC or CNOOC looking to sell.
Why not? Looks like the Asian investment in Alberta oil has come to a dramatic stop. I've heard rumors of some Asian companies' desire to exit.

[Xtrema]

Originally posted by Pacman


Would have to think Cenovus and Encana are targets

Yeah. Encana worth nothing, not even the risk. I expect everyone will just pick at the corpse when it goes bankrupt.

Cenovus may worth something if they can't hold onto current price. But who would be the suitor? CNRL is awfully silence so far. Shell doesn't have the cash. Suncor is still digesting. Imperial?