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UPDATE 1-Suncor, Canadian Oil in talks aimed at clinching friendly deal-source

Published 2016-01-17, 10:00 p/m
© Reuters. UPDATE 1-Suncor, Canadian Oil in talks aimed at clinching friendly deal-source
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(Changes sourcing, adds background)
By John Tilak and Euan Rocha
TORONTO, Jan 17 (Reuters) - Suncor Energy Inc SU.TO , which
recently extended its hostile bid for Canadian Oil Sands Ltd
COS.TO , is now in talks with its target and a friendly deal
could be clinched as early as Monday, according to a source
familiar with the matter.
Suncor, Canada's largest oil producer, is contemplating
improving the exchange ratio around the all-stock offer in an
attempt to sweeten the deal, said the source, who asked not to
be named as the talks are private.
The two Canadian companies have been working on a revised
bid since Friday, the Wall Street Journal reported earlier on
Sunday, citing a source, who said talks were still ongoing.
The two companies were not immediately reachable for
comment.
Suncor is currently offering Canadian Oil Sands shareholders
0.25 of a Suncor share for each Canadian Oil Sands share they
hold.
The offer, launched in early October, initially valued the
company at about C$4.3 billion ($2.96 billion). The recent oil
price rout has hurt the value of Suncor's shares, so the bid
currently values Canadian Oil Sands at C$3.8 billion.
Canadian Oil Sands has a 36.7 percent stake in Syncrude, the
oil-sands mining consortium in northern Alberta that is Canada's
largest single source of crude oil.
Suncor extended its bid for Canadian Oil Sands earlier this
month after its target's poison pill expired with it failing to
find a white knight.
At the beginning of last week Suncor had received more than
40 percent of the votes in favor of its bid for Canadian Oil
Sands, a source familiar with the situation told Reuters. It was
however, still short of the two-thirds majority it required in
order to clinch a deal.
($1 = 1.4529 Canadian dollars)

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