*
MEG vote rescheduled to November 6
*
Cenovus and former rival Strathcona announced voting
support
deal Monday
*
Meeting delay will allow for disclosures around Cenovus
sale of
assets to Strathcona
(Adds regulator comment in paragraph 9, background)
By Amanda Stephenson
Oct 30 (Reuters) - The board of Canadian oil sands
company MEG Energy ( MEGEF ) adjourned its expected shareholder
vote Thursday on a buyout by Cenovus Energy ( CVE ), saying a
regulatory inquiry has prompted the need to disclose additional
information.
The vote on the sale, which would have ended a months-long
bidding saga for what is Canada's last pure-play oil sands
producer, will take place on November 6 instead, MEG's board
chair James McFarland said.
The adjournment is being made with Cenovus' consent, he
said, and will give MEG the opportunity to make disclosures
around an asset transaction announced Monday between Cenovus and
one-time rival bidder Strathcona Resources ( STHRF ).
Cenovus said Monday it had entered into a voting support
agreement with Calgary-based Strathcona, which owns 14.2% of MEG
and had previously indicated it would vote against Cenovus'
offer.
In exchange, it said Strathcona would purchase from Cenovus its
Vawn thermal oil project in Saskatchewan as well as certain
undeveloped lands in Saskatchewan and Alberta for C$75 million
($53.5 million) in cash at closing, and additional contingent
payments of up to C$75 million.
Cenovus and Strathcona, which kicked off the battle for MEG in
May by launching a hostile bid for the oil sands producer, had
been locked for months in a bidding war. But Strathcona
abandoned its pursuit after Cenovus raised its offer
price earlier this month.
Analysts had said the deal between the two former rivals would
push Cenovus' support for its offer to well above the
approximately 66% of MEG shareholders it needed for its bid.
But last week three MEG shareholders told Reuters they had filed
complaints with Alberta's securities regulator over what they
view as the board's attempt to tilt the sales process in
Cenovus's favour.
A spokesperson for the Alberta Securities Commission
declined to comment.
($1 = 1.4024 Canadian dollars)