Friday, January 30, 2009

Did Harper make undervalued Canadian Oil Sands a target of Exxon?

$5 billion Prime West Energy Trust was acquired by Abu Dhabi in 2007, because Harper's income trust tax left it undervalued and vulnerable. The net effect of which was a loss of significant tax revenue to Ottawa, and the further loss of sovereignty over Canada's energy sector.

Now Canada's largest income trust, Canadian Oil Sands, appears to be in the sights of Exxon (parent company of Imperial Oil), who are gushing with cash..

Way to go Harper, you economist know nothing, and Jack Layton, foreign takeover proponent. By the way, where is your proof of tax leakage from income trusts?

Canadian Oil Sands Trust a buy target?

Reuters  Published: Friday, January 30, 2009
Chris Schwarz/Canwest News Service

CALGARY, Alberta -- Shares of Canadian Oil Sands Trust. (T.COS.UN), the biggest shareholder in Syncrude Canada Ltd, rose as much as 5.7% on Friday, on rumors that the company could become an acquisition target.
Units of the trust, which holds a 37% stake in Syncrude, the world's biggest oil sands producer, rose 75 cents to $19.25 at 1 p.m. on the Toronto Stock Exchange. Earlier they touched $19.55.
The units have fallen 47% over the past 12 months.
Rumors have begun circulating that the company may be an acquisition target, with Imperial Oil Ltd, Syncrude's No. 2 shareholder, seen as a potential buyer for the trust, though analysts said the possibilities of such a deal for the $9.3-billion (US$7.5-billion) trust were remote.
"It would be stretch," said William Lacey, an analyst at FirstEnergy Capital. "Imperial is pushing ahead with Kearl, and they are pretty debt adverse."
Kearl is the company's $8-billion oil sands project
Gordon Wong, a spokesman for Imperial, Canada's biggest oil explorer and refiner, declined to comment on the speculation.
Analysts say investors may be looking for the next takeover target in Canada's oil sands following the unsolicited $617-million bid for UTS Energy Corp that French oil major Total SA launched earlier this week to grab a 20% stake in the Fort Hills oil sands project.
"UTS started the whole expectation of 'who's next?'," said Phil Skolnick, an analyst at Genuity Capital Markets.
The rise in Canadian Oil Sands units also came despite a big cut in the trust's quarterly payout to investors announced earlier this week. The trust cut its distribution to 15 cents from 75 cents because of falling oil prices.
© Thomson Reuters 2009

© 2008 The National Post Company. All rights reserved. Unauthorized distribution, transmission or republication strictly prohibited.


Dr Mike said...

Just think of what would have happened had the credit crisis not raised it`s ugly head.

We would be looking at tax losses in the 3-5 billion dollar range per annum as at least half of the trust market would have been gobbled-up into non-taxable entities.

I guess we should be thanking George Bush & his ultra-Conservative cronies for saving us from the Harper trust policy--at least the country will have the tax dollars just a little longer.

Of course Steve , as an investor I have you personally to thank for my empty pockets , yeah , the one`s that used to jingle with cash from my trust distributions.

I will be calling on you shortly with many of my fellow investors for a handout to keep affloat--yeppers , we are the same guys who used to be self-sufficient because of our investments.

I guess it was more important to look after your panel-infesting buddies than ordinary Canadians who were just trying to do the right thing.

Meow Mix anyone??

Dr Mike Popovich.

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