(In U.S. dollars unless noted)
TORONTO, March 23 (Reuters) - Petro-Canada shares PCA.TO shot to their highest level in nearly six months at the open on Monday after news that Suncor Energy Inc (SU.TO) said it would buy the company in a deal initially valued at $14.86 billion.
Shares of Petro-Canada opened up 18 percent at C$35.01 on the Toronto Stock Exchange and then rallied to C$35.99, which marked their highest level since Oct. 1.
Suncor Energy shares sagged 3 percent to C$29.98.
The deal would see Petro-Canada shareholders receive 1.28 common shares of the merged company for each Petro-Canada share, while Suncor shareholders will get one common share of the merged company for each Suncor share.
$1=$1.24 Canadian Reporting by Frank Pingue; Editing by Jeffrey Hodgson