Canadian Oil Sands, a major force in the oilsands business in several Canadian provinces, has rejected an unsolicited offer to buy it out, reported CBC News.
The reason for declining the offer was not necessarily because of the terms of the buyout the company stated, but rather that it didn’t have enough time to review it.
Directly after the rejection, the company announced a new “shareholder rights plan designed to ensure that [Canadian Oil Sands] shareholders and the board have adequate time to consider and evaluate” all buyout offers from any company.
The new shareholder plan is set into motion if any company attains more than 20% of COS’s stock. It allows current stockholders of COS to buy stock at a discount, thus making the acquisition less attractive to potential buyers.
The offer was made by Suncor Energy, another large oil sands competitor. According to Bloomberg, Suncor executives expected that the offer would be rejected by COS, particularly as the price was substantially lower than a similar offer made in April of this year.
One executive with a major stake in COS added that the offer was “a little light,” at only $.25 per share.