UPDATE 1-Canadian Oil Sands in early-stage talks with potential bidders

(Adds details from sources, background)
By John Tilak and Euan Rocha
TORONTO, Nov 25 (Reuters) - Canadian Oil Sands COS.TO ,
which is trying to attract a white knight following a hostile
bid from Suncor Energy SU.TO , needs more time to review
options as more than two dozen parties have expressed an
interest, according to a regulatory filing.
An affidavit submitted to the Alberta Securities Commission
by RBC Capital Markets, which has been hired by Canadian Oil
Sands to help review options, said "four highly credible
parties" have already signed confidentiality agreements.
Following Suncor's C$4.3 billion ($3.23 billion) offer last
month, Canadian Oil Sands adopted an extended poison pill to
thwart the bid. Suncor is attempting to get the pill quashed.
The provincial securities regulator will hold a hearing on the
case Thursday.
A source familiar with the matter, who asked not to be named
as the matter is private, said that over 75 Canadian Oil Sands
shareholders have submitted letters to the regulator supporting
the request to extend the pill deadline.
Five other sources involved in the process, who also spoke
on condition of anonymity, said parties that have shown interest
include private equity firms, pension funds and other energy
players. The sources noted the timing of a potential bid would
depend on the hearing's outcome.
Two of the sources said parties that have shown some
interest include Blackstone (N:BX) Group BX.N and KKR & Co LP
KKR.N , with others in the mix including the Canada Pension
Plan Investment Board (CPPIB) and Ontario Teachers' Pension
Plan. The four were not immediately reachable for comment.
One of these two sources said two Indian oil and gas
companies have also shown interest in Canadian Oil Sands, which
owns a 37 percent stake in Syncrude - Canada's biggest synthetic
crude project. Suncor owns 12 percent of Syncrude.
A third source said the target is working to woo other
Syncrude investors, but did not specify which ones. Imperial Oil
IMO.TO , Sinopec Corp 0386.HK 600028.SS , CNOOC 0883.HK ,
Mocal - a unit of Nippon Oil, and Murphy Oil (N:MUR) MUR.N all have
stakes in Syncrude.
But the fourth and fifth sources cautioned a rival bid is
far from certain as few others could generate the same
operational savings from a deal as Suncor.
Still, the company and their bankers said they are
optimistic.
"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 RBC in its affidavit.