Suncor, COS clash at Alberta Securities Commission

A lawyer for Suncor Energy says the Alberta Securities Commission should overturn an extended deadline for shareholders of Canadian Oil Sands to decide whether to accept its proposed takeover bid.

In closing arguments on the second day of hearings, David Tupper told the regulator it should reject the COS plan to give its shareholders 120 days to consider Suncor’s $4.5-billion allstock takeover offer.

Tupper says the COS plan lacks shareholder approval and there is little likelihood that a new buyer will come forward.

He also warned that the COS share price will likely see a significant drop if the COS plan is upheld because Suncor will not extend its 60-day offer, which is set to expire next Friday.

Tristram Mallett, part of the COS legal team, accused Suncor of “fear mongering’’ and objected to that company’s portrayal of COS as a “financial basket case.’’

He says that without the COS shareholder rights plan, there is little chance of finding another potential buyer, but with the plan there is a good chance.