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Husky and MEG

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asked Oct 12, 2018 09:04 AM by
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Jin,

Can you share your thoughts on the recent takeover bid from Husky? How do you think it will play out?

I am currently holding, but is there a good chance that Husky will up their offer from $11/share? Do you think the major shareholders would take the offer?

Thanks, Hiep

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answered Oct 19, 2018 08:07 PM by
Jin Won Choi gravatar image Administrator

Hi Hiep,

So it looks like MEG rejected Husky's offer since you posted this question. This isn't a surprise to me. Husky's offer was a hostile one, meaning it had no support from MEG's board of directors from the beginning.

I personally think Husky low-balled MEG on its offer. That's probably the major reason why MEG's board of directors didn't support it. I think other big oil companies will agree, which is why I think there's a good chance that a better offer will come in. But I have no idea how to handicap those odds.

With Husky's offer, there's now a veritable army of merger arbitrage analysts who are analyzing the odds of other offers. We're now at an information disadvantage compared to those analysts, so I've sold my shares shortly after the offer was made public.

Jin

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Asked: Oct 12, 2018 09:04 AM

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