SU Good Company vs. COS Bad Company
It's pretty simple: COS bet the farm on oil prices remaining in the $80 - $100 range and lost - no hedges, high cost operations, old equipment in need of costly maintenance, only own one asset (a 36.74% interest in the Syncrude project), etc. Conversely, SU has been and still is a well-managed company: diversified asset base, lots of cash in the bank, downstream operations, etc. - there's a reason why Warren Buffett picked SU as his Canadian oil and gas stock.....Any CEO worth his salt will try to acquire assets in exchange for the lowest compensation they can, just as COS management / shareholders want the highest possible price for their shares......the difference is, COS's future doesn't look that bright as a stand-alone company - I suspect that if COS is not taken over and simply continues as an independent company, they will still find it hard to generate enough in earnings and cash flow to maintain operations, pay their (now rather modest) dividend, pay down their debt, and stash away enough money if/when the next breakdown in their operations occurs.....a company is only worth what someone else is willing to pay for it......Williams may indeed be lowballing the company and may sweeten the offer, but SU will be just fine if Williams walks away - not so sure about COS......