Strathcona will vote against Cenovus offer for MEG Energy, founder Waterous says

[Pumpjack Silhouette on the Great Plains in Alberta]
ImagineGolf/E+ via Getty Images

Strathcona Resources (OTCPK:STHRF [https://seekingalpha.com/symbol/STHRF]) will vote against [https://www.bloomberg.com/news/articles/2025-08-22/waterous-strathcona-to-oppose-cenovus-cve-offer-for-meg-energy-meg] Cenovus Energy's (NYSE:CVE [https://seekingalpha.com/symbol/CVE]) C$7.9B acquisition [https://seekingalpha.com/news/4488255-cenovus-energy-to-buy-meg-energy-in-c79b-deal-topping-strathcona-bid] of MEG Energy (OTCPK:MEGEF [https://seekingalpha.com/symbol/MEGEF]), founder Adam Waterous told Bloomberg on Friday, saying the latter's board accepted an inferior offer in an attempt to circumvent his own bid.

Strathcona (OTCPK:STHRF [https://seekingalpha.com/symbol/STHRF]), which owns a 9.2% stake in MEG Energy (OTCPK:MEGEF [https://seekingalpha.com/symbol/MEGEF]), will continue engaging with shareholders prior to the September 15 deadline to accept its own hostile takeover offer, Waterous said, adding that if its bid fails, Strathcona will vote its stake against the Cenovus (NYSE:CVE [https://seekingalpha.com/symbol/CVE]) deal.

Cenovus (CVE [https://seekingalpha.com/symbol/CVE]) agreed to buy MEG (MEG [https://seekingalpha.com/symbol/MEG]) in a cash-and-stock deal that values the company at C$27.25/share, with ~75% in cash, while Strathcona’s (OTCPK:STHRF [https://seekingalpha.com/symbol/STHRF]) unsolicited offer works out to ~C$28.25/share after a share price surge since it first took the offer directly to shareholders in May; Strathcona's bid also includes a larger stock component.

MEG's (OTCPK:MEGEF [https://seekingalpha.com/symbol/MEGEF]) board, which previously rejected [https://seekingalpha.com/news/4458456-meg-energy-s-board-rejects-strathcona-s-4_2b-takeover-offer] Strathcona's (OTCPK:STHRF [https://seekingalpha.com/symbol/STHRF]) offer as inadequate, "clearly adopted an 'Anybody But Strathcona' view," Waterous said.

But Cenovus (CVE [https://seekingalpha.com/symbol/CVE]) may need to sweeten its bid [https://www.reuters.com/business/energy/cenovus-acquire-meg-energy-c79-billion-oil-sands-expansion-deal-2025-08-22/] prior to a planned shareholder vote in October, Desjardins analyst Chris MacCulloch said.

MORE ON CENOVUS ENERGY AND STRATHCONA RESOURCES

* Strathcona Resources: MEG Energy Or A $10 Dividend? Cenovus Holds The Answer [https://seekingalpha.com/article/4814872-strathcona-resources-meg-energy-or-10-dividend-cenovus-holds-answer]
* MEG Energy: Repurchase Program, Low Debt, Growth, And Lower Costs Will Pave The Way [https://seekingalpha.com/article/4812995-meg-energy-repurchase-program-low-debt-growth-and-lower-costs-will-pave-the-way]
* Cenovus Energy: Growth, Repurchase Program, And Competitive Advantage Are Compelling Advantages [https://seekingalpha.com/article/4809358-cenovus-energy-growth-repurchase-program-and-competitive-advantage-are-compelling-advantages]