Petrominerales shares jump 43 pct in Colombia on takeover deal

Reuters

BOGOTA, Sept 30 (Reuters) - Shares in Canadian oil companyPetrominerales surged 43 percent on Colombia's stockexchange on Monday, after a takeover deal by Pacific Rubiales, Colombia's largest private oil producer.

Petrominerales shares traded on the Toronto stockexchange also rose but by a much lower 3.9 percent to C$11.62.Toronto-listed shares in Pacific Rubiales fell 1.2 percent whileits Bogota-listed shares fell 2.5 percent to 37,900pesos.

The C$1.6 billion ($1.55 billion) takeover, financed mainlythrough cash and bank loans, will bring synergies for PacificRubiales' Colombia operations, including a source of lighter oilto use as a diluent for its own heavier crudes, the company saidin an online presentation to analysts on Monday.

Increased access to oil pipeline transport would also reducePacific Rubiales spending on more expensive road haulage to takesome its crude to ports, the company said, as well significantlyincreasing the area it owns for exploration and production.

Trade in the shares of both companies was halted by Canada'sfinancial regulator on Friday ahead of the announcement of thedeal which came on Sunday evening.

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