Canadian oil producer MEG Energy on Monday urged its shareholders to reject a nearly C$6 billion ($4.42 billion) hostile takeover offer from Strathcona Resources, calling the bid inadequate and not in their best interest.
The board also launched a strategic review to explore alternatives that could lead to a better offer than MEG’s current plan to be a standalone company.
In May, the Canadian oil and gas producer Strathcona Resources said it planned to launch a hostile takeover bid for MEG Energy, valuing its rival’s shares at C$23.27 per share. MEG’s last close was C$25.71.
Later, MEG advised its shareholders to not take action on the unsolicited takeover bid.
Strathcona Resources did not immediately respond to Reuters request for comment.
(Reporting by Pooja Menon in Bengaluru; Editing by Leroy Leo)