RE:RE:Wishful ThinkingLast time Oil prices were at 60$, COS was trading about 10$. Let's say Suncor doesn't buy COS and it's shares fall to 6$. Why wait for oil price to get back to 60$ for COS to be worth 10$ when you can get that amount now and still benefit from rising oil prices by owning either Suncor or another company of your choice. Just because you lost the money with COS doesn't mean you have to make it back with the same company.
Now as the price of oil and Suncor keeps going down, it makes Cos offer even less appealing to shareholders and like I said, I think you need at least .32 for shareholders to accept. In this scenario, do you want your shares worth 6$ or 11$. I choose 11$ and still have the upside with Suncor. If you don't like the upside, take the 11$ and buy another oil company.
If someone comes up to you and tells you I have a gift for you. Either I give you 1,000 shares of COS worth $6,000 (let's face it that's what it will be worth without any take over premium if oil price remains the same when the offer expires) or I give you $11,000 in Suncor;s share or whatever other company of your choosing. Which offer would you take. This scenario is again based on an .32 offer as like I said, I don't believe .25 gets it done. Now I know you say COS will be up more when oil price rises so let's say COS doubles from 6$ to 12$ when oil price trade at 65$. Your Suncor share or any other company only have to be up 10% and you would still be better off (11,000 x 10%=1,110). Now if you think COS is going to go up 100% and Suncor or any other oil company only 10% well than go ahead and keep your shares.