Skip to main content
The Globe and Mail
Support Quality Journalism
The Globe and Mail
First Access to Latest
Investment News
Collection of curated
e-books and guides
Inform your decisions via
Globe Investor Tools
Just$1.99
per week
for first 24 weeks

Enjoy unlimited digital access
Enjoy Unlimited Digital Access
Get full access to globeandmail.com
Just $1.99 per week for the first 24 weeks
Just $1.99 per week for the first 24 weeks
var select={root:".js-sub-pencil",control:".js-sub-pencil-control",open:"o-sub-pencil--open",closed:"o-sub-pencil--closed"},dom={},allowExpand=!0;function pencilInit(o){var e=arguments.length>1&&void 0!==arguments[1]&&arguments[1];select.root=o,dom.root=document.querySelector(select.root),dom.root&&(dom.control=document.querySelector(select.control),dom.control.addEventListener("click",onToggleClicked),setPanelState(e),window.addEventListener("scroll",onWindowScroll),dom.root.removeAttribute("hidden"))}function isPanelOpen(){return dom.root.classList.contains(select.open)}function setPanelState(o){dom.root.classList[o?"add":"remove"](select.open),dom.root.classList[o?"remove":"add"](select.closed),dom.control.setAttribute("aria-expanded",o)}function onToggleClicked(){var l=!isPanelOpen();setPanelState(l)}function onWindowScroll(){window.requestAnimationFrame(function() {var l=isPanelOpen(),n=0===(document.body.scrollTop||document.documentElement.scrollTop);n||l||!allowExpand?n&&l&&(allowExpand=!0,setPanelState(!1)):(allowExpand=!1,setPanelState(!0))});}pencilInit(".js-sub-pencil",!1); // via darwin-bg var slideIndex = 0; carousel(); function carousel() { var i; var x = document.getElementsByClassName("subs_valueprop"); for (i = 0; i < x.length; i++) { x[i].style.display = "none"; } slideIndex++; if (slideIndex> x.length) { slideIndex = 1; } x[slideIndex - 1].style.display = "block"; setTimeout(carousel, 2500); }

Suncor president and CEO Steve Williams talks to shareholders before his speech during Suncor Energy's annual general meeting in Edmonton on Tuesday, April 29, 2014.

JASON FRANSON/THE CANADIAN PRESS

The CEO of Suncor Energy is throwing cold water on speculation that its hostile takeover offer for Canadian Oil Sands will be sweetened.

Steve Williams says the $4.3-billion bid is good enough, describing it as full and fair.

Williams says given the gloomy outlook for crude prices and lacklustre performance at the Syncrude oilsands mine, COS shareholders should find the offer compelling.

Story continues below advertisement

COS and Suncor are both partners in Syncrude – COS with a 37 per cent interest and Suncor holding 12 per cent.

But Suncor says if it's able to increase its ownership share to just under half, it can do more to help the project run smoothly.

The board and management of COS have rebuffed Suncor's advances, calling the bid exploitative, opportunistic and not in the best interest of shareholders.

Williams said COS shareholders should make their own decisions.

"Our view is that since we made the offer, crude prices have come down and most of the commentators now believe it's lower for longer," he said Thursday after discussing Suncor's third-quarter results, which included a steep drop in operating earnings.

"We have looked at all historical periods and almost any of them will show you that Suncor is as exposed to a crude upside as Canadian Oil Sands (TSX:COS) is. Our belief is that this is a full and fair offer and should be compelling to Canadian Oil Sands shareholders."

COS reports its third-quarter results later Thursday.

Story continues below advertisement

Imperial Oil Ltd., controlled by U.S. heavyweight ExxonMobil Corp., has a 25 per cent share of Syncrude and manages its day-to-day operations.

Williams said the goal of the COS bid is not to take control of operations from Imperial, but rather to marshal more of its resources to lend support.

Syncrude has been dogged by operational woes over the years. Most recently, a fire in late August damaged pipes, power and communication lines, leading to reduced output during the third quarter.

Report an error
Tickers mentioned in this story
Due to technical reasons, we have temporarily removed commenting from our articles. We hope to have this fixed soon. Thank you for your patience. If you are looking to give feedback on our new site, please send it along to feedback@globeandmail.com. If you want to write a letter to the editor, please forward to letters@globeandmail.com.

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff. Non-subscribers can read and sort comments but will not be able to engage with them in any way. Click here to subscribe.

If you would like to write a letter to the editor, please forward it to letters@globeandmail.com. Readers can also interact with The Globe on Facebook and Twitter .

Welcome to The Globe and Mail’s comment community. This is a space where subscribers can engage with each other and Globe staff.

We aim to create a safe and valuable space for discussion and debate. That means:

  • Treat others as you wish to be treated
  • Criticize ideas, not people
  • Stay on topic
  • Avoid the use of toxic and offensive language
  • Flag bad behaviour

Comments that violate our community guidelines will be removed.

Read our community guidelines here

Discussion loading ...

To view this site properly, enable cookies in your browser. Read our privacy policy to learn more.
How to enable cookies