Pacific Rubiales bonds drift lower as Alfa stands firm on bid
By Paul Kilby
NEW YORK, June 26 (IFR) - Bonds issued by Pacific Rubiales were drifting lower on Friday as Mexico's Alfa stood firm in its bid for the oil and gas company amid a heated proxy battle over the acquisition.
The latest shot across the bows in Venezuelan investment firm O'Hara Administration Co's efforts to block the sale came last night when conglomerate Alfa said its offer of C$6.50 per share was "fair and final".
"Alfa is calling O'Hara's bluff, saying if they don't like the deal they will explore opportunities elsewhere and that is the last thing O'Hara wants," said a New York-based trader.
O'Hara has yet to give ground, however. In a statement released Friday, it noted that proxy voting firm Glass Lewis will also encourage shareholders to nix the deal at a vote scheduled for July 7.
This follows a similar move earlier this week by proxy advisory firm Institutional Shareholder Services, which also rejected the approximately US$1.6bn bid for Pacific Rubiales.
O'Hara, which holds close to 20% of the company, began its proxy fight to prevent a takeover by Alfa and Harbor Energy on June 18, claiming the C$6.50 price undervalues the company.
Alfa is offering an 81% premium versus the 30-day volume weighted average price prior to the deal's announcement in May, and said that O'Hara has failed to counter its price.
"As a shareholder Alfa is seriously concerned there is no credible alternative to this transaction and will be forced to seek alternative JV partners for Mexico if the transaction is not completed," Alfa said in a statement. Continued...