Canadian billionaire investor Seymour Schulich, who initially called Suncor’s (NYSE:SU) C$4.3B offer for Canadian Oil Sands (OTCQX:COSWF) "ridiculous," now says he and potentially other major investors would be willing to support the deal.
Schulich, who owns 5% of COSWF, says he is part of a group of major investors who together control 28% of the company and who will not tender their shares with SU, which is offering to exchange each COSWF share for 0.25 SU shares.
He says none of his group wants to sell at a low point in the oil price cycle but could be willing to support the deal if SU gave them an option to buy more shares should oil prices rise in the future - "If you give us a warrant on your stock that if oil goes up in two years... the warrant has value and the shareholder gets value... If they put that in, I could support the deal."