RE:RE:I'm sure SU is on the bid today buying all they can
Yeah. I'm quite sure what's been offered so far is just the opening bid. It's like when you buy a house. You might as well start lower than you are actually willing to pay in the hopes it will set the stage for a lower price in the end.
Easy for SU to issue shares. It's dilutive though SU would also be increasing book and asset value so it won’t hurt the value of the company.
The question is how high will SU go? They have already decided to dilute - I'm sure they are prepared to dilute a little more than the current offer to lock up at $10 billion asset with 80 years of prime oil sands resource.
Even if SU pays .5 a share they will look like geniuses two years out when oil is over $80 barrel. They pay COS’s debt out of cash and essentially just have lifting costs and capex. The COS portion of SU would be throwing off quite a return for the lousy $2.5 billion invested in actual cash.