Deals
Li Ka-shing’s Husky Goes Hostile in Chinese Battle for Canada’s Oil Sands
- Plan sets up Canadian oil-sands battle with MEG investor Cnooc
- Suitor says it went to shareholders after board refused talks
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Husky Energy Inc. made a C$3.3 billion ($2.6 billion) hostile bid for MEG Energy Corp., setting up a battle between the Canadian oil company linked to Hong Kong billionaire Li Ka-shing’s family and Chinese energy giant Cnooc Ltd., a major investor in the targeted oil-sands producer.
Husky Chief Executive Officer Rob Peabody says he’s taking the cash and stock proposal directly to shareholders after MEG’s board spurned an earlier offer and that his company remains prepared to speak with directors. There’s a compelling rationale in connecting MEG’s production from northwest Alberta’s oil sands with Husky’s refining system to gain the most value from each barrel of oil, he said.