PARIS, April 28 (Reuters) - French oil major Total SA on Tuesday abandoned its C$830 million ($680 million) bid for Canadian oil sands developer UTS Energy Corp after failing to win shareholder support for its offer.
Total last month raised its bid to C$1.75 per share from the C$1.30 opening bid made in January but even the sweetened price was rejected by shareholders who were convinced that UTS's 20 percent stake in Petro-Canada's Fort Hills oil sands was worth more than the French company's offer.
Michael Borrell, the head of Total's Canadian division, said in a statement Total remained committed to its investments in Canada and would look for ways to expand in the oil sands sector.
Despite Total's withdrawal, UTS said it would seek alternative deals to boost its share price. Chief Executive Will Roach said the company is in discussions with an unspecified number of potential bidders.
'We have a number of financially credible parties in that process,' Roach said on a conference call. 'With the withdrawal of the Total bid we now have a little bit more time to get this right.'
He said the options being discussed include the sale of its Fort Hills stake, a sale of its other undeveloped oil sands properties, selling the whole company or acquiring a rival.
UTS share fell 6 Canadian cents, or 3.8 percent to C$1.52 on the Toronto Stock Exchange.
($1=$1.22 Canadian)
(Editing by Frank McGurty) Keywords: UTS TOTAL/ (jeff.jones@thomsonreuters.com; +1 403 531 1624; Reuters Messaging: jeff.jones.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
Total last month raised its bid to C$1.75 per share from the C$1.30 opening bid made in January but even the sweetened price was rejected by shareholders who were convinced that UTS's 20 percent stake in Petro-Canada's Fort Hills oil sands was worth more than the French company's offer.
Michael Borrell, the head of Total's Canadian division, said in a statement Total remained committed to its investments in Canada and would look for ways to expand in the oil sands sector.
Despite Total's withdrawal, UTS said it would seek alternative deals to boost its share price. Chief Executive Will Roach said the company is in discussions with an unspecified number of potential bidders.
'We have a number of financially credible parties in that process,' Roach said on a conference call. 'With the withdrawal of the Total bid we now have a little bit more time to get this right.'
He said the options being discussed include the sale of its Fort Hills stake, a sale of its other undeveloped oil sands properties, selling the whole company or acquiring a rival.
UTS share fell 6 Canadian cents, or 3.8 percent to C$1.52 on the Toronto Stock Exchange.
($1=$1.22 Canadian)
(Editing by Frank McGurty) Keywords: UTS TOTAL/ (jeff.jones@thomsonreuters.com; +1 403 531 1624; Reuters Messaging: jeff.jones.reuters.com@reuters.net) COPYRIGHT Copyright Thomson Reuters 2009. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.