MEG Energy board recommends vote for Cenovus deal over Strathcona

MEG Energy (MEGEF) announced that its board has reaffirmed its recommendation to vote for the Cenovus (CVE) transaction and recommends that shareholders reject the revised unsolicited Strathcona Resources (STHRF). “The revised Strathcona offer consists of unattractive all-share consideration,” the company said in a statement. It added, “While Strathcona referenced possible lock-up agreements, it has provided no meaningful detail, including on scope, such as whether distributions to WEF’s limited partner investors would be restricted, duration, and the parties to such lock-up agreements, and MEG cannot determine whether the lock-up mitigates or merely delays the risks to MEG Shareholders. This overhang risk remains significant and unresolved.”