By OGJ editors
HOUSTON, July 14 -- Canadian Oil Sands Trust has raised its offer a second time for Canada Southern Petroleum Ltd. in a bidding contest with Petro-Canada. All the companies are based in Calgary.
The trust offered $13.10/share, or $198 million total, for Canada Southern, exceeding the most recent offer of $13/share from Petro-Canada. Petro-Canada started its bid at $7.50/share but has since raised it twice (OGJ, July 10, 2006, p. 27).
All Canada Southern shareholders tendering their common shares will receive the increased offer price.
Canadian Oil Sands Pres. and Chief Executive Officer Marcel Coutu said purchasing Canadian Southern would act as a hedge for natural gas used by oil sands producer Syncrude Canada Ltd., of which Canada Oil Sands is a partner.