Bidding War in the Oil Patch: Why Adam Waterous Isn’t Backing Down
In the Money with Amber Kanwar
Strategic Insights into a Hostile Bid for Meg Energy
This chapter explores the updated hostile bid for Meg Energy, focusing on the shift from a mixed cash and stock offer to a complete all-stock proposal. It outlines the implications for shareholders and the strategic advantages associated with this change in the acquisition approach.
It's the biggest takeover battle in Canada right now. Adam Waterous returns to In the Money with Amber Kanwar to make his case for why MEG Energy shareholders should vote for his offer. As Founder & Executive Chairman of Strathcona Resources he’s going head-to-head against Cenovus in a high-stakes bidding war.
In this candid conversation, Adam explains why Strathcona raised its offer, what makes his all-share deal different from Cenovus’ largely cash bid, and why he believes MEG shareholders are leaving nearly $4 billion on the table if they don’t back his plan. He also tackles tough questions about shareholder concerns, Strathcona’s special dividend, and whether critics are right to call his stock “inflated paper.”
Adam lambastes MEG's board for never engaging with him from the very beginning and tells how much Cenovus should have fork over to outbid him.
If you want to understand what’s really at stake in the MEG Energy bidding war — and hear directly from the man behind one of the boldest plays in oil sands history — you won’t want to miss this interview.
Timestamps
00:00 Show intro & details for swag giveaway
02:15 Adam Waterous tells Amber why he increased his offer for MEG Energy
06:20 Adam makes his sales pitch for why MEG shareholders should tender to Strathcona
14:00 Questions about Adam’s argument
16:25 Break
16:50 What kind of feedback is Adam getting from MEG shareholders?
18:50 How far is Adam willing to go to get MEG?
21:35 Pushback of shareholders
25:20 Is Strathcona using ‘inflated paper’ for the transaction?
29:00 Adam on the special dividend
31:35 Are there options for M&A other than MEG?
36:10 Why won’t Adam just offer a 4-handle and be done with it?
39:15 Does MEG’s rejection feel personal?
42:10 Adam believes MEG’s board is not acting in the best interests of shareholders
44:50 Where is Strathcona in two years? Why Adam is bullish on Canada’s oil sector
46:50 Mike Larson of the Moneyshow tells viewers about the upcoming event in Toronto
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DISCLAIMERS
The information provided in this podcast is for informational purposes only and does not constitute financial, investment, or professional advice.The views expressed by the host and guests are their own and do not necessarily reflect the opinions of any organization or company. The host and guests may maintain positions in any securities discussed on the podcast. Always consult with a qualified financial advisor or professional before making any investment decisions.
In the Money delivers expert stock picks, actionable ideas, and timely money management tips. Hosted by business journalist Amber Kanwar, each episode features interviews with top portfolio managers who suggest ways to achieve good returns. Covering everything from ETFs and Canadian stocks to global investing trends, dividend strategies, and risk management, this show is made for DIY investors, stock market enthusiasts, and anyone looking to sharpen their financial strategy.
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