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June 20 (Reuters) - Canadian oil and gas producer Strathcona said on Friday it supports MEG Energy`s 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 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 MEGґs 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 MEGґs 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) (Reporting by Anusha Shah, additonal reporting by Gursimran Kaur
in Bengaluru; Editing by Tasim Zahid)

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