Q: You indicated in your answer to Warren's question that you feel the suggested buyout price for MEG Energy by Strathcona is too low. What do you think would be a reasonable offer, and what do you think MEG management would hold out for? Which companies might make an offer? Do you think the company will in fact be sold?
5i Research Answer:
In terms of other suitors, we would consider CNQ, CVE and perhaps SU as possibles. In terms of price, we think the stock needs to be $30 before management would entertain offers. We do think it is in play and ultimately a deal at some price will be reached and the company will be sold.