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Strathcona Resources Ups Takeover Offer for MEG Energy

On Monday, Strathcona Resources increased its bid for MEG Energy Corp., proposing $30.86 per share as a competing alternative to Cenovus's acquisition agreement.
The competing Cenovus transaction, backed by MEG's board, requires a two-thirds shareholder vote expected on October 9 to approve a cash-and-stock offer valuing MEG at $27.79 per share.
Strathcona owns about 14.2 percent of MEG shares, plans to vote against the Cenovus deal, and highlights that both companies hold adjacent oilsands properties at Christina Lake near Fort McMurray, Alta.
Executive chairman Adam Waterous argued there are benefits beyond price and said, "These are two radically different paths," noting Cenovus expects a $3.9-billion gain while Strathcona offers long-term commitment.
The raised Strathcona offer values MEG at about $7.85 billion and suggests potential for a combined entity producing over 720,000 barrels daily, implying a significant industry impact if approved.

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