Suncor Energy extends Canadian Oil Sands offer

CALGARY, Alberta -- Suncor Energy has extended its offer to Canadian Oil Sands (COS) Limited shareholders. The company will file a corresponding notice of extension to formally extend the expiry time of its offer to Jan. 8, 2016, Suncor said in a statement Thursday.

"Our offer is full and fair and in the best interests of COS shareholders," said Steve Williams, Suncor's president and CEO. "This process has always been about allowing COS shareholders to decide for themselves on the merits of our offer. The good news is that they will finally have their say."

Since Suncor first expressed interest in acquiring COS, the oil market outlook has worsened, COS has reported negative free cash flow for the first nine months of 2015 and most recently announced an optimistic production outlook for 2016 that seems destined to continue COS' track record of overpromising and under-delivering, Suncor said.

Canadian Oil Sands responded by advising its shareholders to take no action.

"Extending the expiry of Suncor's bid does not change the fact that it is substantially undervalued and opportunistic," said Donald Lowry, chairman of Canadian Oil Sands.  "Nothing else has changed so, as it stands, there is more value for shareholders in a strong, independent COS than there is in this offer. Our Board will continue to pursue full and fair value for all shareholders now that the decision by the Alberta Securities Commission has leveled the playing field between Suncor and other interested parties."