The true definition of friendly take over is "huge packages to management".
5 years out this will be the deal of a lifetime for SU or the worst thing they have ever done. I such hope it's the former, but as I said before I didn't think SU needed to take on the additional risk at this time.
We have a world over supply of oil and in Canada you now have a provincial and federal government that are anti oil. They can't even get approval for a new pipeline to get the oil to market. For some reason Canadian oil has become the whipping boy for the environmentalist, when the blood oil from the middle east, Russia and Venezuela gets a free pass.
based on today's price action I'd say that this is a done deal.
However, I still think SU should have pull the offer, too much risk betting on if and when oil will increase in price. Lots of egos at play here.
I''m a suncor shareholder and I hope all COS shareholders reject the bid. I think over the course of the next year there will be far better assets to pick up than COS at much cheaper prices.
If oil does rebound over the next 5 years SU doesn't need COS to do well, but if the price goes lower or stays at current levels COS is just a boat anchor.