Suncor increases its COS offer by 12%. Schulich and other major investments agree. The deal is likely to go ahead now.
http://business.financialpost.com/ne...6-billion-deal
Quote:
Suncor Energy has raised the stock portion of its takeover offer for Canadian Oil Sands by 12 per cent, resulting in a $6.6-billion friendly deal that ends a public battle between the two Calgary-based companies.
Suncor (TSX:SU) is now offering to exchange 0.28 of a share for each share of Canadian Oil Sands (TSX:COS) — up from 0.25 of a Suncor share per COS share.
Because the offer is primarily an exchange of shares, its monetary value will fluctuate. Based on Friday’s closing stock price for Suncor stock, the new offer was worth $8.74 per COS share, up from $7.81 under the original formula.
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COS shareholders got a very good deal. Given the fact that oil prices have dropped, what, 40% since the offer was made this is probably about a 100% premium on what they'd be worth today otherwise.