BOE Report

MEG Energy: Plunges as Husky abandons hostile bid

0 Comments

** Shares of Canadian oil sands producer MEG Energy plunge 38 pct to C$5.29 after Husky Energy ends C$3.3 bln unsolicited pursuit of MEG

** HSE's offer to buy MEG for C$11 in cash per share or 0.485 of a HSE share, expired at 5 p.m. E.T. on Wednesday

** HSE was expecting to secure over 50 pct support from MEG's shareholders, sources told Reuters Wednesday

** HSE up 14 pct at C$17.64 on the Toronto Stock Exchange; stock had fallen ~20 pct in 2018

** Analysts at Tudor, Pickering & Holt say they don't view news as "negative outcome" for HSE, citing a recent drop in crude prices and the pressure the deal would have put on HSE's leverage metrics

** MEG shares have lost a quarter of their value since HSE first approached the company in Sept

(Reporting by John Benny in Bengaluru)