Strathcona backs MEG's alternative strategic process after C$6 billion rejected bid

Strathcona, a Canadian oil and natural gas producer, said it supported MEG Energy’s decision on Friday to explore strategic alternatives and initiate a strategic alternative process after MEG Energy urged its shareholders to reject Strathcona’s hostile takeover offer of C$6 billion (US$4.38 billion).

MEG Energy told shareholders on Monday to reject the proposal, calling it inadequate and against their interests.

The board launched a review of strategic alternatives to MEG's current plans to remain an independent company.

Strathcona is supported by Calgary-based Waterous Energy Fund and said that it was willing to continue to engage in the alternative process. It also expressed its desire to have a constructive dialogue with MEG’s board.

Strathcona believes that it is the only comparable company capable of providing meaningful overhead synergies in the event of a deal.

Strathcona has been one of North America's fastest growing oil companies since 2020 through a series acquisitions.

Strathcona's all-cash and stock offer, announced in May, will combine two of Canada’s largest thermal oil sands producers. Strathcona would become the fifth largest oil producer in Canada. ($1 = 1.3691 Canadian dollars) (Reporting by Anusha Shah, additonal reporting by Gursimran Kaur in Bengaluru; Editing by Tasim Zahid)

(source: Reuters)