Canadian Oil Sands Urges Shareholders Reject Suncor Offer

(RTTNews) - Canadian Oil Sands Limited (COS.TO) or COS said its Board of Directors is recommending that shareholders reject the offer by Suncor Energy Inc. (SU.TO, SU) to acquire all of the company's common shares.

The Board said the value offered is wholly inadequate, and it substantially undervalues the COS ownership in Syncrude.

According to the company, timing of the Suncor bid is entirely opportunistic. It is intended to take advantage of unprecedented conditions in the energy industry.

The bid is exploitive and fails to recognize that COS is strongly positioned to withstand low oil prices and emerge with even greater value when oil prices recover.

October 10, Suncor Energy offered to acquire oil-sands producer Canadian Oil Sands for about C$4.3 billion, or $3.28 billion, in an all-stock deal.