Suncor Energy (TSE:SU, NYSE:SU) has extended the offer period of its hostile bid $4.12bn takeover bid for Canadian Oil Sands (TSE:COS).
The offer period had been set to expire on Friday, 8 January, but has been extended to the afternoon of Wednesday, 27 January, after Canada's largest oil producer by market value declared itself heartened by the response to the offer for its smaller Calgary-based rival.
"We are encouraged by the number of shares that have been tendered," said Steve Williams, Suncor's president and chief executive officer.
The company declined, however, to reveal the acceptance levels.
"We believe strongly in the value of the offer for COS shareholders, including a large premium to the pre-offer price, a 45% dividend increase and the benefit of owning shares in Suncor, Canada's leading integrated energy company. We have decided to extend the offer in order to allow shareholders to continue to tender to the offer," he added.
The board of Canadian Oil Sands has urged shareholders to reject the bid, saying the company would be better off staying independent.
“While only Suncor has access to all the tender results, the best information that COS currently has is that a strong majority of COS shareholders rejected the substantially undervalued and opportunistic Suncor bid,” Canadian Oil Sands said Monday, according to the Globe and Mail newspaper.
Suncor is offering $8.52 a share. At Friday's close, Canadian Oil Sands' shares closed at $7.47.