RE:done deal, just need to announce it
The deal isn't done until it's done (if it becomes done).......excerpts from yesterday's Globe & Mail Article: "Since Suncor launched its offensive, it was revealed that it had offered Canadian Oil Sands an exchange ratio of 0.32 of one of its shares during talks last April. Canadian Oil Sands board rejected that and talks went no further. Upon some reflection it seems clear to us that Suncors bid would need to be at least this high for [Canadian Oil Sands] shareholders to approve, and we believe that Suncor assumed as much when it went public with the current bid, Mr. Dunn wrote. "The odds of some other suitor being able to outbid Suncor which has deep experience with oil sands in general and Syncrude in particular arent that strong, he said. The operation has struggled for years with poor reliability of the bitumen upgrading equipment, which has meant outages and missed production forecasts."........."He said institutional investors, such as pension and private-equity funds, might kick the tires, but hes skeptical that one will step up with a superior offer. Syncrudes value may suffer if the battle results in the operation being relegated to a secondary holding for Suncor and Imperial, and it keeps posting disappointing results, he said."........"Barclays, meanwhile, is hedging its bets on a deal closing. Analyst Thomas Driscoll said that, based on the banks target for Suncor shares, a higher bid from Suncor, into the 0.32-of-a-share range, would imply a Canadian Oil Sands stock price of $11 to $12. However, if a deal falls through, he estimated the shares could tumble to around $6. Mr. Driscolls new target is $10"......It would be interesting to see what the COS share price becomes if Suncor were to withdraw their bid and not propose a sweetened offer.......