Cenovus CEO Says He’s ‘Closing the Door’ on Higher MEG Offer

(Bloomberg) – Cenovus Energy Inc.’s top manager, Strathcona Resources Ltd.

“We pay at the top end of the range. And you know, we are in a world where we think we have received the only forward -looking offer,” he said. “We’re closing the door,” he said.

Cenovus announced last month a cash and stock offer that valued Meg a little more than $ 28. However, Meg’s shares are traded above this on Tuesday, which closed to 29.12 c in Toronto on Tuesday, after announced Strathcona’s All-Stock opponent the previous day.

Strathcona’s proposal, “No reliability, Mc, McKenzie said, the company’s control shareholder Adam Waterous, Meg’s award -winning oil sands in the northeast Alberta, used extreme valuable stock to capture the majority stake.

After informing the comments of Bloomberg News McKenzie, Calgary -based MEG shares fell on Wednesday. The stock fell 2% at 11:14 at Toronto. Genovus shares rose up to 3.7%.

To close the agreement, Genovus needs the approval of at least two -thirds of the votes of the Meg shareholders at a meeting planned in October. Strathcona has 14% of Meg and plans to vote against it, so Genovus needs to take an even higher percentage than other shareholders.

McKenzie said, “We need to take the vote for sure,” McKenzie said. “What we have to do is continue to talk to Meg shareholders, to continue to be sure that they understand our agreement and the principle of the agreement.”

Meg and Waterous representatives did not respond immediately to their requests for comments.

Genovus offers a $ 27.25 cash or 1.325 shares for each Meg stock. Investors can choose, but the company limits the total amount of cash to $ 5.2 billion C.

On a fully rated basis, Meg owners would receive $ 20.44 c and 0.33125 of Genovus shares.

Waterous claimed that Genovus shareholders have limited future gains for Meg investors as their assets became more productive.

Strathcona’s entire stock offer will give 43% of the company combined to exist Meg shareholders if it succeeds. “Why is this really important, that this agreement is a large amount of economic,” Waterous said at Bnn Bloomberg Television on Tuesday.

McKenzie rejected this attack line. “There is nothing to prevent any of these shareholders from using their cash to buy Genovus shares. And this is a bit of a stupid debate.”

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