Strathcona Resources Ltd. said it is abandoning its takeover bid for MEG Energy Corp. after the target company’s board accepted an increased offer from oilsands major Cenovus Energy Inc. earlier this week. Strathcona said it was disappointed to be terminating its bid but that “anti-competitive actions taken by the MEG board” would make it difficult to counter Cenovus with an improved offer, the company said in a statement Friday afternoon. The private-equity backed company, led by veteran oilpatch dealmaker Adam Waterous , said it planned to hold a shareholder meeting in November to approve a $10 per-share special distribution to its shareholders, payable either as a dividend or return of capital. The unexpected move came on the heels of MEG abruptly cancelling a special meeting this week where shareholders were set to either approve or reject a takeover offer from Cenvous. The meeting was postponed to Oct. 22 after the board reached a new agreement with Cenovus on an increased cash-and-stock offer worth $8.6 billion at Tuesday’s close. MEG’s updated deal with Cenovus included an agreement to waive the typical “standstill” provision, allowing Cenovus to purchase up to 9.9 per cent of MEG’s outstanding shares before the deal closed — a move that industry experts said could effectively boost Cenovus’s influence at the rescheduled shareholder meeting on Oct. 22. On Friday, Strathcona characterized the move as “without precedent” in Canadian public markets. “Strathcona has concluded that the MEG board’s ability to continuously extend the Cenovus meeting date, and continuously allow Cenovus to purchase and vote additional shares, makes an improved offer for MEG impractical and not in the best interests of Strathcona shareholders,” the company said. “While Strathcona is disappointed with this outcome, it is pleased that its actions, along with those of its fellow MEG shareholders, delivered something which the MEG board could not, namely a more equitable transaction with Cenovus which allows MEG shareholders to participate more meaningfully in future upside.” More to come… • Email: mpotkins@postmedia.com