MEG Energy holders should vote in favor of Cenovus takeover, ISS says

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MEG Energy (OTCPK:MEGEF [https://seekingalpha.com/symbol/MEGEF]) shareholders should vote in favor of its planned sale to Cenovus Energy (NYSE:CVE [https://seekingalpha.com/symbol/CVE]), proxy adviser ISS recommended.

“It is difficult to conclude with certainty that there is a more compelling offer available, or that one will emerge," ISS said, according to Bloomberg review of the ISS report.

The recommendation comes as Cenovus Energy (NYSE:CVE [https://seekingalpha.com/symbol/CVE]) has been battling with Strathcona Resources (OTCPK:STHRF [https://seekingalpha.com/symbol/STHRF]) to purchase MEG Energy. Cenovus Energy agreed to buy MEG Energy in a cash and stock deal valued at C$7.9 billion [https://seekingalpha.com/news/4488255-cenovus-energy-to-buy-meg-energy-in-c79b-deal-topping-strathcona-bid] (~US$5.7 billion) including debt, last month, though Strathcona has raised its own bid, though the offer has been rejected. A shareholder vote is scheduled for Oct. 9.

“MEG shareholders will have an opportunity to participate in the upside potential of the combined company, albeit only partially and there appears to be downside risk of non-approval," ISS said in its report.

MORE ON MEG ENERGY , CENOVUS ENERGY INC.

* Cenovus Energy: In Defense Of The Bid [https://seekingalpha.com/article/4824592-cenovus-energy-in-defense-of-bid]
* Cenovus Energy: A Great Canadian O&G Company To Buy [https://seekingalpha.com/article/4824309-cenovus-energy-a-great-canadian-o-and-g-company-to-buy]
* MEG Energy: Another Unwanted Strathcona Offer [https://seekingalpha.com/article/4821091-meg-energy-another-unwanted-strathcona-offer]
* Cenovus Energy CEO won't increase offer for MEG Energy - Bloomberg [https://seekingalpha.com/news/4493784-cenovus-energy-ceo-wont-increase-offer-for-meg-energy-bloomberg]
* Cenovus Energy GAAP EPS of C$0.45, revenue of C$12.3B; updates FY outlook [https://seekingalpha.com/news/4475231-cenovus-energy-gaap-eps-of-c045-revenue-of-c123b-updates-fy-outlook]