Q: Hi 5i
It was Just announced that possibly cenovus and an indigenous group might team up for meg....What would the expected offer be to make this happen...and where does meg share price go from current level if deal were to happen....what happens to SCR
..
thx
It was Just announced that possibly cenovus and an indigenous group might team up for meg....What would the expected offer be to make this happen...and where does meg share price go from current level if deal were to happen....what happens to SCR
..
thx
5i Research Answer:
This is, for now, just a rumour, but CVE we think does make sense as a potential buyer. SCR's offer expires Sept. 15 so we would expect something before then if a deal materializes. MEG's price of course will depend on terms, but we think it is worth near $30 in a friendly deal. SCR has vowed to pay a $10 special dividend if the deal fails and we might not see a huge reaction.