Cenovus Energy(US:CVE) MINT·2025-09-10 15:43Core Viewpoint - Cenovus Energy Inc. will not increase its takeover offer for MEG Energy Corp. despite a competing bid from Strathcona Resources Ltd., asserting that its current offer is at the highest end of the valuation range [1][2]. Group 1: Takeover Offer Details - Cenovus's cash-and-stock offer values MEG at just over C$28 per share, while MEG's stock has been trading above this value, closing at C$29.12 [2]. - The offer consists of C$27.25 in cash or 1.325 shares of Cenovus for each MEG share, with a total cash limit of C$5.2 billion to manage debt [5]. - On a pro-rated basis, MEG shareholders would receive C$20.44 in cash and 0.33125 of a Cenovus share [5]. Group 2: Competitive Landscape - Strathcona's all-stock offer would provide existing MEG shareholders with 43% of the merged entity, which is claimed to have significant economic upside [6]. - Cenovus's CEO criticized Strathcona's bid as lacking credibility, suggesting that it relies on overvalued stock to gain a majority stake in MEG's assets [3][6]. Group 3: Shareholder Approval Process - To finalize the acquisition, Cenovus requires approval from at least two-thirds of MEG shareholders at an upcoming meeting, with Strathcona intending to vote against the deal [4]. - Cenovus is actively engaging with MEG shareholders to communicate the merits of its offer and secure the necessary votes [4].