$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
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Friday, January 30, 2009
Posted by Fillibluster at 2:17 PM