Canadian Oil Sands Limited is trying to drum up competition against Suncor’s $4.3 billion hostile takeover offer.
According to an affidavit filed to the Alberta Securities Commission by Jamie Anderson, with RBC Capital Markets, there are more than 25 parties interested in COS.
Anderson is COS’ financial advisor and says four “highly credible” parties have also signed confidentiality agreements.
The Securities Commission is hearing Suncor’s challenge to COS’ new shareholder rights plan, otherwise known as a poison pill defence meant to give the company more time to seek out new bids.
“I believe that certain interested parties will also seek to conduct site visits to examine Syncrude’s operations on a firsthand basis,” says Anderson in his affidavit. “These site visits will be conducted on a confidential basis in order to preserve the integrity of the process.”
According to Anderson one of the interested parties already attended a management presentation on Nov. 19, and others will be scheduled within the next two weeks.
“I firmly believe that with more time to run our process, there is a good prospect for one or more counterparties to make a proposal,” said the Deputy Chairman of RBC Capital Markets. “It is my belief that the Board adopted and is maintaining the Rights Plan for the legitimate purpose of protecting the bona fide long-term interests of Shareholders.”
Anderson believes the 60 day window in which COS has to canvass other interested parties is simply too short, and that the poison pill was the only choice the Board had to make sure Shareholders had enough time to make the right decision.
Canadian Oil Sands Limited is the largest shareholder in Syncrude with a 36.74 per cent stake, it’s also the operator of the project.
Suncor owns a 12 per cent share, other stakeholders include Imperial Oil with 25 per cent ownership, Sinopec with a 9.03 per cent stake, Nexen owns 7.23 per cent of the synthetic crude project, Mocal Energy Limited and Murphy Oil Company both own 5 per cent stakes.
