Sept 18 (Reuters) - Cenovus Energy ( CVE ) said on

Thursday it has raised its takeover offer for MEG Energy ( MEGEF )

to C$28.44 per share from C$27.25, intensifying a

months-long bidding war with Strathcona Resources ( STHRF ) for

the Canadian oil sands producer.

The battle for MEG Energy ( MEGEF ), one of Canada's few remaining

independent oil sands producers and owners of strategic assets

in Alberta's oil-rich heartland, underscores a broader

consolidation in the sector, as domestic giants tighten their

grip following years of foreign divestment.

Cenovus said MEG shareholders can choose between receiving

cash and stock or an all-stock payout, adding that combining the

two firms would expand operations at the Christina Lake oil

sands project in Alberta.

In August, Cenovus proposed a C$7.9 billion ($5.73 billion),

or C$27.79 per share, cash-and-stock offer to acquire MEG.

Strathcona in September raised its offer to C$30.86 per share,

from the C$23.27 apiece it had proposed in May in a hostile

takeover attempt, which is set to expire on October 20.

MEG has urged shareholders to reject Strathcona's bid,

saying it was "fundamentally unattractive" and reaffirmed

support for sale to Cenovus Energy ( CVE ).

In September, Strathcona purchased additional common shares

of its peer MEG Energy ( MEGEF ), taking its stake to 14.2% of MEG's

outstanding shares.

In June, MEG had urged its shareholders to reject the

Strathcona bid, stating the bid was inadequate and was not in

the company's best interest, following which the board launched

a strategic review to explore better alternatives that could

lead to a better offer.

The Canadian oil sands industry has been gaining strength

recently, even on the downturn of the global oil industry owing

to economic uncertainty related to U.S. tariffs and OPEC+

pumping more barrels.

($1 = 1.3792 Canadian dollars)