Canadian oil company Pacific Rubiales has informed that two investors ALFA and Harbour Energy have canceled their $1.7 billion takeover offer for the company, due to opposition from shareholders.

To remind, the two investors in May had their takeover offer accepted by the management of Pacific Rubiales, who also urged other shareholders to do the same.

However, other investors, namely O’Hara Administration, objected the potential deal, claiming the “fatally flawed” offer undervalued the shares of Pacific Rubiales.

Worth noting, the investors had offered $6.50 Canadian dollars per share of Pacific Rubiales, describing the offer price as “full, fair and final.”

Pacific Rubiales on Wednesday said: “The arrangement agreement will terminate with immediate effect. Accordingly, the Special Meeting of Shareholders scheduled for July 28, 2015, which had been called in order for shareholders to consider the arrangement has been cancelled… The Company will continue with its plans to reduce operating costs, divest non-core assets, reduce debt, and continue to pursue Mexico energy opportunities with our preferred joint venture partner ALFA.”

“We’re pleased that the arrangement agreement was terminated,” said O’Hara’s Orlando Alvarado. “As one of the company’s largest shareholders, we look forward to engaging with various stakeholders and playing a constructive role in the company’s future,” he said, according to Canada’s The Globe and Mail.

Source: www.offshoreenergytoday.com

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