A hostile takeover bid for COS by Suncor Energy may have been thwarted, at least in part, if the Alberta Securities Commission provides an extension on the deadline to accept the deal. If this happens Suncor Energy says that it will not extend the bid for COS any further than the December 4 time line previously given. The energy giant has stated that it will walk away rather than extend the bid offered. Steve Reynish, the executive vice-president of strategy and corporate development for Suncor Energy, testified at a meeting that the company will walk away if an extension is upheld by the Alberta Securities Commission. The hearing in front of the commission allowed arguments on both sides to be heard, and they will determine whether COS can keep their poison pill defence against he hostile takeover attempt.

The poison pill defence requires an open bid period minimum of 120 days, double the bid period of 60 days that Suncor Energy offered. The Alberta Securities Commission must decide whether COS can require the minimum bid period or if the shareholders must decide within the 60 days that the bid from Suncor allows for. Arthur Korpach, the director for COS, explained “The real issue is: What is the time that’s appropriate and needed to complete the process with our third parties so that we can bring forward choice for our shareholders, as opposed to no choice?” Do you think Suncor Energy will walk away if COS is allowed to extend the bid deadline? Should the deadline be extended?