Can you affordNot to be long COS over a weekend on merger monday with SU "looking at COS?
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Globe says Suncor, Imperial Oil seen as ready to buy
2015-09-17 08:00 ET - In the News
Also In the News (C-COS) Canadian Oil Sands Ltd
Also In the News (C-IMO) Imperial Oil Ltd
Also In the News (C-MEG) MEG Energy Corp
The Globe and Mail reports in its Thursday edition Suncor and Imperial Oil have the strongest potential among Canada's large energy companies to scoop up rivals or various assets as the industry slump drags on, Citigroup says. The Globe's Jeffrey Jones writes Suncor and Imperial, with profitable refining assets and strong balance sheets, could decide to take advantage of smaller oil sands producers trading near or below book value, the U.S.-based bank said. Potential targets include MEG Energy and Canadian Oil Sands, which currently trade at 0.5 times and 0.8 times book value. Either could increase cash flow per share for a buyer if overhead and growth-spending cuts are made. There could be more gains if MEG's or Canadian Oil Sands' debt can be renegotiated at Suncor's or Imperial's superior ratings. Suncor chief executive officer Steve Williams has said his company has too much cash on its balance sheet and has noted that prices for potential acquisitions have fallen to levels that make them interesting. Time is on Suncor's side. "There are serious amounts of fire sale or distressed assets on the market," Mr. Williams said at a conference earlier this month. "So we're looking very closely."