June 20 (Reuters) - Canadian oil and gas producer

Strathcona said on Friday it supports MEG Energy's ( MEGEF )

decision to initiate a strategic alternatives process

and explore potential deals after MEG urged shareholders to

reject Strathcona's C$6 billion ($4.38 billion) hostile takeover

bid.

On Monday, MEG Energy ( MEGEF ) advised shareholders to reject the

offer, describing it as inadequate and not in their best

interests.

The board also launched a strategic review to consider

alternatives that could deliver greater value than MEG's current

plan to remain a standalone company.

Strathcona, which is backed by Calgary-based private equity

firm Waterous Energy Fund, said it remains willing to

participate in the alternatives process and looks forward to

constructive engagement with MEG's board

Strathcona said it believes it is the only peer company

which would provide meaningful overhead synergies if a deal is

reached.

Since 2020, Strathcona, has become one of the

fastest-growing oil companies in North America through a series

of acquisitions.

The all-cash-and-stock offer announced by Strathcona in May,

would combine two of Canada's largest pure-play thermal oil

sands operators and make Strathcona the country's fifth-largest

oil producer.

($1 = 1.3691 Canadian dollars)