UPDATE 1-Suncor extends bid for Canadian Oil Sands until Jan. 27

(Adds details, quote from lawyer)
By John Tilak and Nia Williams
TORONTO/CALGARY, Jan 8 (Reuters) - Suncor Energy Inc
SU.TO , Canada's largest oil producer, said on Friday it has
extended its hostile bid for Canadian Oil Sands Ltd COS.TO
until Jan. 27.
The move suggests that Suncor has close to 50 percent of the
votes in support of the deal and is confident it can sway the
rest in its favor. Suncor needs the support of two-thirds of
Canadian Oil Sands shareholders in order to win the bid.
Suncor bid for Canadian Oil Sands in October and later
extended the offer until Jan. 8, promising shareholders improved
operating efficiencies and a dividend boost.
In response, Canadian Oil Sands has mounted a spirited
defence of its independence, adopting a new shareholder rights
plan known as a poison pill and urging investors to reject the
"substantially undervalued" Suncor bid.
No alternate bidder surfaced for Canadian Oil Sands during
this time.
"When no competitor emerges, which is the case here, bidders
have won two-thirds of the time," said Fasken Martineau partner
Bradley Freelan, referring to a study on hostile bids that he
co-authored.
He added that Suncor was in a strong position in this fight.
The takeover battle comes against a backdrop of tumbling
global crude prices, which hit 12-year lows this week and left
many producers in the oil sands region of northern Alberta
struggling to cover cash costs. O/R
Syncrude in northern Alberta is Canada's largest single
source of crude oil and Canadian Oil Sands' only producing
asset, in which it has a 36.7 percent stake.
The upgrading and mining project has capacity to produce up
to 350,000 barrels per day but has been dogged for years by
operating issues and missed production targets.
Earlier this week, Suncor Chief Executive Steve Williams
said he would walk away from the deal if not enough shares are
tendered by Friday's deadline.