08:39 AM EDT, 06/16/2025 (MT Newswires) -- MEG Energy ( MEGEF ) said Monday that its board recommended that shareholders reject Strathcona Resources' ( STHRF ) unsolicited takeover bid.

MEG's board said Strathcona's bid was "inadequate, opportunistic, and not in the best interests of MEG or its shareholders."

In late May, Strathcona offered to acquire the MEG shares it does not already own for a combination of 0.62 of a Strathcona share and $4.10 in cash apiece. The offer remains open until Sept. 15.

"Strathcona's offer is inadequate by all reasonable measures and is not the right path forward for MEG shareholders," said James McFarland, MEG's chairman.

The company said MEG shareholders should take no action and not tender their shares to Strathcona's offer.

"A combination with Strathcona would expose shareholders to inferior assets and significant capital markets risks, including a $6 billion overhang resulting from Waterous Energy Fund's 51% ownership in the combined company, which would allow WEF investors to realize liquidity over time," McFarland said.

MEG's share price rose 1.1% on Friday to $26.09 on the TSX.