Cenovus Energy Inc T.CVE

Is CVE setting up for a MEG take over?

[CashHungry]

I know this has been speculated before, although previously I thought CVE would be too gun shy considering the environment.  However, this latest disposition, which there was no hint of in the recent guidance annoncement adds fuel to the speculation.

CVE has committed to prioritzing a 7% NCIB (which they have already moved foward on, reducing debt to less than 8 billion and 'possibly' increasing dividends by 4X (which only works out to about 3%) in an undefined time frame.  These are really modest objectives considering strip pricing and current debt levels.  It seems to me that they have left plenty of dry powder to execute a take over of MEG without contradicting share holder commitments.

[PabloLafortune]

Perhaps its a 3 way trade: sell Tucker, buy Sunrise, sell Toledo.

[Quintessential1]

This is being specualted about all over the boards given various synergies and MEG advertising their tax benifits moving forward.  A lot of it is covered in this blog: https://divestor.com/?p=10555 I think Cenovus has accelerated debt repayment more than guidence for a reason too and MEG might be it. I have been thinking about adding more Cenovus but would it be better to add MEG in

[Albatross]

Usually successfull take-overs are bought at premium to market price.