HUSKF - Cenovus sinks after 'excessive' premium in Husky offer

Cenovus Energy (CVE) -7.5% pre-market as analysts cite a high premium in its C$3.8B ($2.9B) all-share deal to buy Husky Energy (HUSKF), announced over the weekend.According to Bloomberg, Credit Suisse downgrades Cenovus to Neutral from Outperform with a C$7 price target, trimmed from C$8, citing an "excessive" 23% premium where a mid-to-high single-digit premium would have been sufficient.Citigroup says the deal is a win for Husky shareholders while leaving it "scratching our heads" to explain Cenovus' perspective.Eight Capital sees the deal as net/net positive with meaningful synergies, noting that larger Husky shareholders opted for a five-year lockup on the deal, which "tells us they want to stick around for the upside" in Cenouvs shares.Morgan Stanley does not expect a competing offer, but the deal may avoid regulatory hurdles.CVE and HUSKF share price movement displays a similar downward track over the past year:

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Cenovus sinks after 'excessive' premium in Husky offer