June 16 (Reuters) - Canadian oil producer MEG Energy ( MEGEF )

on Monday urged its shareholders to reject a nearly C$6

billion ($4.42 billion) hostile takeover offer from Strathcona

Resources ( STHRF ), calling the bid inadequate and not in their

best interest.

The board also launched a strategic review to explore

alternatives that could lead to a better offer than MEG's

current plan to be a standalone company.

In May, the Canadian oil and gas producer Strathcona

Resources ( STHRF ) said it planned to launch a hostile takeover bid for

MEG Energy ( MEGEF ), valuing its rival's shares at C$23.27 per share.

MEG's last close was C$25.71.

Later, MEG advised its shareholders to not take action on

the unsolicited takeover bid.

Strathcona Resources ( STHRF ) did not immediately respond to Reuters

request for comment.

($1 = 1.3563 Canadian dollars)