Takeover proceeds for Pacific Rubiales; less volatility in Treasuries; CFE roadshow ahead

By Christine Van Dusen

Atlanta, May 21 – Latin America-focused Pacific Rubiales Energy Corp. was in focus on a firm Thursday for emerging markets assets after the Federal Open Market Committee’s minutes – indicating that a rate hike in June is unlikely – helped U.S. Treasuries recover.

“Flows leaned heavily towards better buying in the high-grade space, with plenty of buyers seeking paper in the technology, energy and financial sectors,” a London-based trader said.

Mexico-based Alfa SAB de CV and Harbour Energy Ltd. on Thursday moved forward with their takeover of Pacific Rubiales, buying the company for about $5.30 a share in an all-cash deal that was approved by the board of directors.

Pacific Rubiales’ bond curve moved up a few points on Thursday morning in response, though Street trades were scarce while investors tried to get a handle on what complications might arise from the takeover, a New York-based trader said.

“Street volumes consistent, but not heavy,” a trader said. “Trace volume very strong, customers pretty quiet all things considering. Liquidity is as good as it’s been this week.”

By the afternoon Pacific Rubiales’ bonds had risen to highs of the year.

In other news, Indonesia set talk and Mexico’s Comision Federal de Electricidad SA (CFE) planned a roadshow for their upcoming issues.

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