Posted on 03/24/2009 12:31:16 PM PDT by Lorianne
Appealing to Canadian nationalism, Suncor Energy Inc. and Petro-Canada said Monday that a proposed merger between the two oil players would create the country's largest energy company and provide the oil patch with protection against potential foreign buyouts.
"I don't know if it is a marriage made in heaven. But it is a match made in Canada," said Suncor's president and CEO Rick George in announcing the all-stock deal to create a $43 billion behemoth.
"This will truly be a flagship Canadian corporation," he said at a Calgary news conference.
The proposed arrangement, announced Monday, would see Petro-Canada equity holders receive 1.28 shares in the new company for each Petro-Canada share, resulting in existing investors getting a 40 per cent piece of the merged entity.
The stock deal gives Petro-Canada investors a 25 per cent premium compared with the share price over the past 30 days, the two companies estimated.
Suncor shareholders would own the remaining 60 per cent of the new firm.
(Excerpt) Read more at cbc.ca ...
Gimme a Molsons.
With the price of oil heading up over their break-even point, the stock should do well. Now if the government would only reverse their decision regarding taxation.
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