ASC Strikes Oil Compromise - COSL Rights Plan Allowed to Stand for an Additional 30 Days
|Area||Corporate Finance and Securities, Mergers and Acquisitions|
The Alberta Securities Commission (ASC) has temporarily upheld a shareholder rights plan implemented by Canadian Oil Sands Limited (COSL) for an additional 30 days in response to an unsolicited takeover bid made by Suncor Energy Inc. (“Suncor”). COSL had defended its rights plan on the basis that the 120-day tender period it required for hostile bids:
- was necessary for shareholders to evaluate recent developments related to COSL’s business and thus the value of Suncor’s offer; and
- was consistent with proposed amendments to the Canadian takeover bid regime (the “Proposed Amendments”).