"Three vote delays, two sweetened bids and countless other twists and turns later, shareholders in MEG Energy Corp. have given their blessing to an $8.6-billion takeover by Cenovus Energy Inc."
"The meeting was initially supposed to be held on Oct. 9, but was put off for two weeks when Cenovus rejigged its offer for the first time. It was then postponed another week when it appeared that offer still did not have enough shareholder support to pass. Then last week, a meeting to weigh the offer sweetened for a second time was adjourned until Thursday due to a last-minute regulatory complaint."
"The saga began in April when another company, Strathcona Resources Ltd., approached the MEG board with a cash-and-stock takeover bid. Strathcona was rebuffed and took the offer directly to MEG shareholders weeks later. In June, MEG's board called the bid "opportunistic" and urged shareholders to reject it as it launched a review to find a superior offer. Strathcona executive chairman Adam Waterous accused MEG of refusing to engage and taking an "anyone but Strathcona" stance."
Shareholders approved Cenovus Energy's $8.6-billion takeover of MEG Energy with more than 86% of shares voted in favour, exceeding the two-thirds majority required. MEG chairman James McFarland thanked shareholders for their "patience over the past couple of weeks." The special meeting was postponed multiple times after Cenovus revised its offer and because the deal initially lacked sufficient shareholder support. A last-week meeting was adjourned due to a last-minute regulatory complaint. The takeover process began when Strathcona Resources launched a cash-and-stock bid in April, which MEG rebuffed and labeled opportunistic. MEG accepted a friendly Cenovus offer in August, after which competing bids and further sweetened offers followed.
Read at www.cbc.ca
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