CALGARY — The board of Canadian Oil Sands Ltd. says investors should reject a $4.3-billion takeover offer Suncor Energy made two weeks ago.
In a letter to shareholders, Canadian Oil Sands calls the Suncor bid undervalued, opportunistic and exploitative.
The COS board accuses Suncor of taking advantage of unprecedented turmoil in the energy industry, but doesn't account for how its target will benefit when oil prices do eventually rise.
Both companies have interests in the massive Syncrude mine north of Fort McMurray, Alta. — COS with 37 per cent and Suncor with 12 per cent.
In the letter, Canadian Oil Sands says Suncor is exploiting inside information it has about improvements to Syncrude's operations that haven't been reflected in the COS share price.
The COS board and its advisers are continuing to look at other options, ranging from remaining an independent company to merging or partnering with another firm.
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