Largest shareholder group to vote against Alfa-Harbour bid for Pacific

Thu May 21, 2015 8:30pm EDT
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By Julia Symmes Cobb and Nelson Bocanegra

BOGOTA (Reuters) - The largest group of shareholders in Canadian oil producer Pacific Rubiales Energy Corp PRE.TO is "extremely disappointed" in a C$6.50-per-share takeover bid from Alfa SAB de CV (ALFAA.MX: Quote) and Harbour Energy Ltd, and will vote against the deal, the investors said on Thursday.

O'Hara Administration Co, speaking on behalf of the Venezuelan shareholder group which owns just under 20 percent of Pacific shares, said it was not consulted on the proposed terms of the acquisition.

"The terms agreed to by the board significantly undervalue Pacific Rubiales and are designed to deter a higher offer," O'Hara said in a statement.

Pacific Rubiales could not be immediately reached for comment.

The offer "is an opportunistic bid that does not reflect the long-term potential of Pacific Rubiales," the group said, adding that it believes shareholders would benefit from the oil company remaining independent.

The group will vote against the bid, the investors said, and is considering acquiring additional shares in Pacific Rubiales.

The company, the largest private oil producer in Colombia, said earlier on Thursday its board voted unanimously in favor of the bid from Mexican conglomerate Alfa and investment firm Harbour, but said it might consider other offers.

The bid is valued at about C$2.05 billion ($1.70 billion), or C$6.50 per share.   Continued...