Cenovus falls after agreeing to buy Athabasca in C$5.7 bln deal

By Reuters News

** US-listed shares of Cenovus Energy CVE.TO fall ~1% to $32.08 premarket

** The Canadian oil producer agreed to acquire Athabasca Oil ATH.TO in a cash-and-stock deal valued at C$5.7 billion ($4 billion)

** Athabasca shareholders may elect to receive C$12 in cash, 0.264 Cenovus shares, or a combination of both for each share held

** Deal will add about 45,000 barrels of oil equivalent per day to Cenovus' production

** Cenovus expects C$85 million ($59.6 million) per year in corporate and commercial savings

** The companies' boards have approved the transaction, which is expected to close in December

** Up to last close, CVE was up 91.5% YTD


($1 = 1.4251 Canadian dollars)

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