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by Stockwatch Business Reporter

West Texas Intermediate crude for July delivery added $1.74 to $60.72 on the New York Merc, while Brent for July added $1.51 to $66.54 (all figures in this para U.S.). Western Canadian Select traded at a discount of $9.90 to WTI ($50.82), down from a discount of $9.75. Natural gas for June added 3.4 cents to $2.94. The TSX energy index added 4.94 points to close at 225.50.

Pacific Rubiales Energy Corp. (PRE) added 10 cents to $6.29 on 29.2 million shares, after receiving and accepting an official takeover offer at $6.50 a share from Alfa SAB and Harbour Energy. The parties started exclusive talks about the $6.50-a-share proposal two weeks ago. Alfa, a Mexican conglomerate, already owns 59.89 million shares or 18.95 per cent of Pacific Rubiales, for which it paid as much as $22.30 a share last year. Harbour is a 2014 creation of Asian commodity trader Noble Group and private equity firm EIG Global. Shareholders of Pacific Rubiales will vote on the takeover in early July. As well, bondholders are being asked to accept various amendments in relation to the deal, including the waiver of a requirement for a change-of-control offer. They will get something in return, such as $5 (U.S.) cash for every $1,000 (U.S.) principal amount of their notes if they submit their consents to all the amendments by June 4 (and if the takeover closes). A Bloomberg article today worried that "that payment may not be enough to satisfy some bondholders." It seems more likely, though, that most bondholders will be too grateful for Alfa's rescue to put up a fight. (One set of notes -- the 5.375-per-cent notes due 2019 -- reached a low of 60 cents on the dollar in January; now they are closer to 95 cents, thanks to Alfa's interest.) The more vocal opposition to the takeover comes from major shareholder O'Hara Administration. Along with affiliates, O'Hara owns 19.49 per cent of Pacific Rubiales, and announced on Tuesday evening that it may take "any and all actions" to prevent the takeover. It said it has no current plans to make its own bid, but "may reconsider doing so if circumstances change." This may simply have been a ploy (although a rather last-minute one) to try to get an offer price higher than $6.50. The circumstances have certainly changed now that the offer has been officially accepted, but based on today's below-offer closing price, investors do not seem to expect a rival bid.

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