Mexico's Alfa SAB and private-equity-backed Harbour Energy Ltd have cancelled a $2-billion takeover offer for Pacific Rubiales Energy Corp. They have to take the decision seeing a massive opposition for the campaign being led by shareholders.

Shareholders carried out a proxy voting and its results unveiled that a significant number of shareholders will vote against the bid. They had launched the bid in May. Pacific Rubiales said that both the shareholders offered a $6.50-a-share for the company, but now they have withdrawn the bid.

Harbour Chief Executive Linda Cook said that the offer was done, but the early proxy results showed that a significant number of shares would be voted against the bid. Both the investors have not offered any other takeover proposal.

It is quite troubling for Pacific Rubiales, as it is under debt of almost $5-billion and also, crude oil prices are declining. Pacific Rubiales's managers tried that the deal does not get cancelled. They have even warned shareholders that going against the offer would mean that the company would face the burden of the debt and this pressure will affect its ability to expand in the coming time.

O'Hara's Orlando Alvarado, who led the opposition, said, "We're pleased that the arrangement agreement was terminated. 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".

Pacific Rubiales will now look for other options to cut costs, sell assets and reduce debt.