Canadian Oil Sands Says It Has Potential Suitors

(RTTNews) - Canadian Oil Sands (COS.TO), the largest owner of the Syncrude oil-sands mining consortium, is reportedly seeking potential suitors in order to fend off a $4.5 billion hostile bid from Suncor Energy Inc. (SU.TO, SU).

More than two dozen parties are said to have expressed interest in the company, with four of them being "highly credible parties." Suncor has touted a lack of competing offers as one of the reasons for shareholders to accept its offer.

Canadian Oil Sands last month urged its shareholders to reject the offer from Suncor, saying the value offered is wholly inadequate, and it substantially undervalues its ownership in Syncrude.

Under the unsolicited offer, shareholders of Calgary-based Canadian Oil Sands will receive consideration of 0.25 of a Suncor share for each COS share held by them. The offer price represents a 43 percent premium to COS' closing stock price on the Toronto Stock Exchange on Friday, October 2.

The acquisition will enable Suncor Energy to boost its presence in the Canadian oil sands. The offer is conditional on getting two thirds of the COS' outstanding stock tendered.

The Alberta Securities Commission is beginning two days of hearings on the issue today.