Cenovus in talks with Canadian Indigenous groups to buy MEG Energy, Bloomberg News reports

Aug 12 (Reuters) - Cenovus Energy CVE.TO is in talks with Canadian Indigenous groups to jointly buy MEG Energy MEG.TO, Bloomberg News reported on Tuesday, citing people familiar with the discussions.

A group of First Nations and Metis communities, including Chipewyan Prairie First Nation and Heart Lake First Nation, is in talks with Cenovus about taking a C$2-billion ($1.45-billion) stake in MEG, the report said.

The Indigenous stake would be backed by financial support from the federal and provincial governments, while Cenovus would bid for the rest, Bloomberg said.

Canadian energy companies have increasingly offered Indigenous communities equity stakes in projects, partly to ward off regulatory snags and environmental protests. The federal government recently expanded a loan guarantee program aimed at helping Indigenous communities access the capital required for such investments.

MEG shares rose 2%.

Reuters could not immediately confirm the Bloomberg report. MEG, Cenovus, and the First Nations groups did not respond to requests for comment.

Cenovus' name has been floated by analysts and in media reports as a possible white-knight buyer for rival oil sands producer MEG, which is the target of a hostile takeover attempt by Strathcona Resources SCR.TO.

In June, MEG Energy advised its shareholders to reject Strathcona's C$6-billion bid and said it would initiate a strategic alternatives process and explore potential deals.

Strathcona's executive chairman told Reuters on Tuesday it would be unfair for either the federal or Alberta government to provide financing for a deal that would support a potential Cenovus offer during what should be a competitive bidding process for MEG.

“Any Indigenous purchase funded through a government backstop would be a direct subsidy to the private sector partner," Executive Chairman Adam Waterous said in an email.

MEG, Cenovus, and the First Nations groups did not respond to requests for comment.

($1 = 1.3762 Canadian dollars)