Big news today was the hostile takeover bid for UTS by Total. In additions to Petrobras and Shell here is another company that is actually doing something smart (as opposed to slashing budgets!).

There have been $27.7-billion worth of transactions in this sector over the past four years. On average, properties have changed hands at $1.34 for each potential barrel of reserves that soak the sand.

Total's offer for UTS values the target company at just 14 cents for each barrel of reserves, or 9 per cent of the average price that previous buyers paid to gain control of oil sands properties. That's what a credit crunch, environmental uncertainty and plunging crude prices have done for the energy companies.

Good Read here [1] and here. [2]

Jeff Martin, an analyst at Peters & Co,  also thinks Petro-Canada is the most likely suitor for UTS Energy.

"Petro-Canada, would be able to pay a significant premium to this current bid ($2.25 per share) and essentially purchase the resource for minimal value after deducting future earn-in commitments (~$300 MM), he wrote in a note to clients. 

"Alternatively, Petro-Canada could ultimately purchase the Fort Hills Project interest from Total, leaving the remaining leases for Total as they are closer to its existing assets."

There will be more M & A in the coming months and I'm predicting that many will not be accepted on the first bid.

I think the best acquistion deal so far was Hudbay's of Lundin Mining. Their first offer was accepted and they got a great deal. I bet the deal would have been contested even today as opposed to several weeks ago.