RE:Suncor Doesn't Rule Out Increased Bid for Canadian Oil Sands
Of course they haven't ruled out increasing the bid. But they have no reason to say they will increase the bid. They achieved their first goal of "letting the shareholders decide" rather than having to deal with COS. They also said they would walk away if the Alberta Security Commissions would extend the offer date. They did not walk away. It's all simple hard ball negociations. SU is doing the right business things, since COS does not want to negociate with them, they are going to the shareholders.
If the shareholders say "yes" at 0.25, they are very happy. If they say no, the ball is in SU's court. SU offered a better ratio in the spring, so it is still in the cards. Being able to expand their existing mine with lease 29 is still on their agenda. This proximity would save them so much future captital costs.
The argument that oil prices have fallen since the friendly offer, hence a lower offer is full and fair, has some merit, but this is not a short term investment for SU, so I think they still have room to offer more.
My guess would be that if the shareholders say "no", SU will up the bid to the same ratio as the friendly offer, and that will gain much more traction.