Total Fails In Bid For Canda's UTS Energy

GREG KELLER

PARIS (AP) — French oil giant Total SA said Tuesday that its cash offer for UTS Energy Corporation had failed as too few shareholders in the Canadian oil sands took up the offer.

Total said that as of the deadline Monday evening, it had not reached a threshhold of two-thirds acceptance of its offer among the Calgary, Canada based UTS Energy and that the offer was now "terminated."

In a statement, the French company said it has given instructions for all shares that had been tendered in the offer to be "promptly returned" to the shareholders.

Earlier this month Total raised its bid for UTS Energy Corp. by about 35 percent, but UTS and two of its major shareholders said the offer is still too low.

Total had raised its offer to 829.8 million Canadian dollars ($677 million) from its original January bid of about 616 million Canadian dollars.

In its statement, Total said it "believed that our offer represented certainty and fair value for UTS shareholders." The company said it "remains committed to its current activitiese and investments in Canada" and will "continue to implement its willing strategy in the oil sands."