CALGARY, Aug. 1 /CNW/ - (TSX - COS.UN) - Canadian Oil Sands Trust (the "Trust") today announced that its wholly owned subsidiaries, Canadian Oil Sands Limited and 1212707 Alberta Ltd. ("Canadian Oil Sands"), have extended the expiry date for its all-cash offer of US$13.10 per common share for all of the outstanding common shares of Canada Southern Petroleum Ltd. ("Canada Southern") (NASDAQ:CSPLF / TSX:CSW) not already owned by Canadian Oil Sands from Tuesday August 1, 2006 to midnight (mountain daylight time) on Friday August 18, 2006, unless further extended or withdrawn. Canadian Oil Sands will mail a formal notice of extension to all Canada Southern shareholders. All other terms and conditions of Canadian Oil Sands' offer for Canada Southern described in its offer and circular and related materials dated June 26, 2006, and as amended by notices of variation dated July 5, 2006 and July 14, 2006, remain unchanged. As of July 31, 2006, approximately 5.2 million common shares of Canada Southern have been validly deposited under Canadian Oil Sands' offer, representing approximately 35 per cent of the outstanding common shares of Canada Southern. Canadian Oil Sands' offer is subject to a minimum tender condition of 66 2/3 per cent. Canada Southern shareholders with questions, requests for copies of the documents, or requiring assistance in tendering their shares, please call D.F. King & Co. Inc. at 1-800-901-0068. All documents related to Canadian Oil Sands' offer are also available on the Trust's website at: http://www.cos-trust.com/investor/. Canada Southern has announced that its Board of Directors, after consultation with its legal and financial advisors, and upon receipt of an opinion from CIBC World Markets Inc., has unanimously determined that Canadian Oil Sands' offer is fair, from a financial point of view, to the Canada Southern shareholders and recommends that shareholders accept the Canadian Oil Sands' offer.
What I find interesting is the wording in the press release. There is an implication in the first sentence that they may now own stock that was purchased in the market. They do not appear to have taken up any of the shares tendered to the bid and they continue to maintain a 67% minimum threshold.
I think the 35% was about right with the number of traders and quick profit artists and momo players who saw a quick 60-70% gain. Even Arnhold etc sold off part of what they had purchased for a quick profit. Long term/visionary and, according to the bashers, delusionary holders expect more.
Why are you surprised? Time and again holders of the shares said they would not tender at what they considered an inadequate level. I do not see how an extention and more exhortations from the BOD are going to change that dynamic. The only thing that will get that next 32% is a higher bid.