MEG Board Rejects Richer Bid From Strathcona’s Waterous (2)

MEG Energy Corp.’s board turned down Strathcona Resources Ltd.’s sweetened offer to buy the oil sands producer, recommending that shareholders stick with a rival proposal from Cenovus Energy Inc.

Strathcona, controlled by former investment banker Adam Waterous, last week offered 0.8 of a share for each share of MEG, valuing the Calgary-based target at around C$7.6 billion ($5.5 billion), based on Friday’s closing price.

The new offer is about 10% higher than Strathcona’s original takeover bid made in May and tops the price Cenovus agreed last month to pay for MEG. But it’s still inferior to Cenovus’s bid, ...