Market Chatter: ISS Backs Cenovus Energy Bid for MEG Energy

MT Newswires Live
09/27

Cenovus Energy (CVE) received support for its bid to acquire MEG Energy (MEGEF) from investor adviser Institutional Shareholder Services, Bloomberg News reported Friday, citing the ISS report to clients.

While the offer is "neither compelling nor opportunistic," MEG shareholders should consider the broader industry context, including limited potential buyers, ISS said, according to Bloomberg.

The deal offers MEG holders "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, according to Bloomberg.

Shareholders are set to vote on the proposal on Oct. 9, and if approved, the deal is expected to close in Q4, Bloomberg reported.

Cenovus, MEG and ISS didn't immediately reply to requests for comment from MT Newswires.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Price: 17.80, Change: +0.10, Percent Change: +0.56

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