Overview

• ISS favors the Cenovus cash‑and‑stock bid over Strathcona’s hostile all‑share offer, calling the recommendation “cautionary support.”
• Cenovus is offering $27.25 in cash plus 1.325 Cenovus shares for each MEG share in a deal valued near $7 billion.
• The transaction requires approval by two‑thirds of MEG shareholders at the Oct. 9 meeting, and Strathcona plans to vote its roughly 14.2% stake against it.
• ISS says the Cenovus proposal is “neither compelling nor opportunistic” but warns Strathcona’s bid carries risks shareholders may not tolerate.
• The proxy adviser also notes MEG holders face limited upside participation due to the smaller equity component and that Glass Lewis is expected to issue guidance soon.