Crude Oil Tar Sand Companies

[NYBob]

Shell bid may start rush for oil sands majors
Royal Dutch makes $7.7-billion offer

DAVID EBNER

With a file from David Parkinson

CALGARY -- Royal Dutch Shell PLC's $7.7-billion bid for the portion of Shell Canada Ltd. it does not own could be the beginning of a rush by international companies looking for major Canadian players in the Alberta oil sands, observers say.

Royal Dutch Shell already owns 78 per cent of Shell Canada and yesterday told the board of directors at Calgary-based Shell Canada it is preparing to make a formal bid of $40 a share in cash, adding that it would not proceed unless it has majority support among minority shareholders.

Companies now potentially in play include Canadian Oil Sands Trust, which owns the largest stake in oil sands miner Syncrude Canada Ltd., and Imperial Oil Ltd., majority owned by Exxon Mobil Corp., according to Kim Shannon, president of Sionna Investment Managers Inc.

UBS Securities Canada Inc. said other oil sands names such as Suncor Energy Inc., Canadian Natural Resources Ltd., Nexen Inc. and EnCana Corp. "could all be considered takeout targets."

http://www.theglobeandmail.com/servlet/story/LAC.20061024.RSHELL24/TPStory/Business