Li Ka-shing’s Husky Energy goes hostile in Chinese battle for Canada’s MEG

Li Ka-shing’s Husky Energy goes hostile in Chinese battle for Canada’s MEG

Li Ka-Shing (Bloomberg)

Husky Energy Inc. made a C$3.3 billion ($2.6 billion) hostile bid for MEG Energy Corp., setting up a battle between Hong Kong billionaire Li Ka-shing’s Canadian oil company 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.

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