(Bloomberg) – The top manager of Cenovus Energy Inc. said the company does not intend to make its takeover offer for the oil -sand producer Meg Energy Corp. Despite a higher competitive bid of Strathcona Resources Ltd. ‘We pay at the highest point of the series. And you know, we’re in a world where we think we have the only viable bid, ‘said CEO Jon McKenzie. “We close the door” to make a higher bid, he said. Last month, Cenovus announced a cash-and-offer offer that appreciates Meg at just over C $ 28 per share. But Meg’s share closed on C $ 29.12 in Toronto on Tuesday after Strathcona announced the previous day that its competitive offer had the previous day. Strathcona’s bid “does not have a credibility to it,” McKenzie said, arguing that the company’s controlling shareholder, Adam Water sauce, used overvalued stock to try to capture a majority in Meg’s valued oil sandbates in northeastern Alberta. Shares of Meg in Calgary fell on Wednesday after Bloomberg News McKenzie’s comments reported. The share dropped 2% to C $ 28.54 at 11:14 in Toronto. Cenovus shares have risen as much as 3.7%. To conclude the agreement, Cenovus needs approval of at least two-thirds of the votes that Meg shareholders brought out at a meeting planned in October. Strathcona owns 14% of Meg and intends to vote against it, so Cenovus must get an even higher percentage of other shareholders. “We have to make sure the vote,” McKenzie said. “Such a part of what we need to do is continue to talk to the Meg shareholders, continue to make sure they understand our agreement and the merits of the agreement.” Representatives of Meg and Water Sauce did not immediately respond to requests for comment. Cenovus offers to pay C $ 27.25 cash or 1.325 of its shares for each Meg share. Investors can choose, but the company limits the total amount of cash to C $ 5.2 billion to reduce its debt. On a complete pro-rated basis, Meg holders would get C $ 20.44 cash and 0.33125 from a Cenovus share. Water sauce argued that Cenovus shareholders by putting in so much cash, the future gains for Meg investors are as the assets become more productive. Strathcona’s offer of all lead, if successful, would give existing Meg shareholders 43% of the merged company. “Why it is very important is that this agreement has a large amount of economic upside,” Water sauce said on BNN Bloomberg Television on Tuesday. McKenzie rejected the attack line. ‘There is nothing to prevent any of these shareholders from using their cash to buy Cenovus shares. And this is a kind of stupid argument. ” -With help from Melissa Shin. (Add additional information that starts in the sixth paragraph.) More stories like these are available on Bloomberg.com © 2025 Bloomberg MP
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