According to a financial adviser Suncor is not the only company who may be interested in COS, and the Alberta Securities Commission must decide whether COS can continue with their defence against a hostile takeover. On October 5 of this year Suncor tried to bypass the COS board and take an offer directly to the shareholders of Canadian Oil Sands, an offer that involved $4.5 billion in stock only. This move was made necessary because COS refused the friendly deal that was initially offered. According to a filing by financial adviser Jamie Anderson of RBC Capital Markets there are several credible parties who are considering COS, and some have even signed confidentiality agreements. The new shareholder rights plan enacted by COS after the hostile takeover bid is described as a poison pill defense by Suncor but COS sees it differently.

In an affidavit filed over the Suncor bid for COS Anderson stated “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. In my opinion, a 60-day period to canvas the range of parties interested in the COS opportunity, to permit them to undergo due diligence and to negotiate an alternative transaction is simply insufficient in these circumstances. I firmly believe 120 days is a more realistic time period.” COS claims that Suncor is being exploitive and opportunistic. COS CEO Ryan Kubik explained “If Suncor had confidence in the merits of its bid, it wouldn’t be trying to ram it through by challenging our shareholder rights plan. It would not need to try to steal time for a decision from our shareholders.” Do you think Suncor is offering a fair bid? Why or why not?