RE:RE:RE:RE:Discount
I think the COS Board is feeling the heat to try and cut a deal to sell the company in the near future - Otherwise, why not just state that the SU offer is not even close to acceptable, they are not interested or seeking to sell the company, and would only consider such a sale if an entity came to them with an eye-popping offer - But this isn't the case: Instead, COS has hired Royal Bank (as COS shareholders' expense) to find them a suitor who will offer more than SU is offering.....In my opinion, it is highly likely that if the SU deal expires, COS fall to at or below $7 and trade with the rest of the energy group - If the oil price will be "lower for longer" as many are saying, COS shareholders would be stuck at share prices well below what they are trading at today (or could have sold at around $10 per share soon after the SU hostile takeover bid was announced), so I suspect there will be pressure on the Board to find a bidder that will offer enough of a premium to the current COS offer to save face....