Canadian Oil Sands rejects Suncor bid; adopts poison pill – Mining.com

October 7, 2015

Canadian Oil Sands calls Suncor’s bid “opportunistic” and has adopted a poison pill defence.

On Monday Suncor commenced an unsolicited offer for struggling Canadian Oil Sands (TSE:COS) for $4.3 billion. Canadian Oil Sands has been labouring under low oil prices while Suncor has weathered the downturn through its higher margin retail and downstream refining operations.

Canadian Oil Sands adopted what it is calling a shareholder rights plan. Following the acquisition of 20 per cent or more of the outstanding shares by any person, each right held by a person other than the acquiring person would entitle the holder to purchase shares at a substantial discount.

The move by Canadian Oil Sands is buying the company time.

Read More: http://www.mining.com/canadian-oil-sands-rejects-suncor-bid-adopts-poison-pill/