CALGARY -- MEG Energy Corp. (MEG.TO) says it will waive its shareholder rights plan in its fight against a hostile takeover offer by Husky Energy Inc (HSE.TO).

However, the company says it continues to unanimously recommend shareholders reject Husky's cash-and-share offer.

MEG noted that since Husky announced its intention to make its offer on Sept. 30, Husky's share price has fallen more than 30 per cent, eroding the value of the offer.

The takeover was worth about $3.3 billion when proposed in September but has fallen to less than $2.5 billion because of deterioration in Husky's share price.

Earlier this week, a CIBC oil and gas analyst said the recent deterioration in crude oil prices makes it unlikely that a better offer will emerge to force Husky to sweeten its hostile bid.

Husky has said that it has received all necessary regulatory approvals for the takeover of MEG and is now waiting for shareholders' response to its offer which expires in mid-January.