Waterous Defends Potential MEG Offer as Investors Blast Premium

Strathcona Resources Ltd. Chairman Adam Waterous said MEG Energy Corp. shareholders would immediately benefit from higher earnings per share if his potential offer for the oil sands producer is accepted, striking back at investors who had criticized his bid as too low.

The C$6 billion ($4 billion) cash-and-stock bid that Strathcona plans to take directly to MEG shareholders offers them a roughly 9% premium to the stock’s closing price the day before it was revealed. Some MEG shareholders said Friday that the proposal undervalues the company.

Read More: MEG Energy Holders Pan ‘Laughable’ Strathcona Takeover Bid

Adam Waterous

Photographer: Gavin John/Bloomberg

Waterous said ...