The competition to acquire Suroco Energy between Petroamerica Oil and VETRA Holding is heating up this morning, with Suroco re-affirming their support for a deal with Petroamerica and calling out VETRA's questionable tactics to gain support for their bid.

According to today's Suroco release, Vetra is paying a proxy solicitation fee to Investment Advisors who solicit Suroco shareholders to vote against the Petroamerica arrangement, a move that puts Investment Advisors interests at odds with shareholders, the company said.

Suroco also accuses Vetra of secretively communicating its offer to investment advisors, and not all Suroco shareholders.

Management of Suroco are opposing Vetra's $0.60 all cash offer in favor of an arrangement with Petroamerica valued at roughly $0.66 today (PTA, last at $0.375, offered 1.7627 shares), which would create a 9000 bopd Colombian producer with plans to grow to 30000 bopd.

In the press release, Suroco also denounces Vetra's offer for having no less than 25 conditions, which are so broadly written in Vetra's takeover circular (page 46-50 here) that the company would have an easy time backing out of their offer.

Here is the news release: Suroco Energy Inc. Reaffirms Recommendation for Business Combination With Petroamerica and Updates Shareholders on Coercive Tactics of Vetra

* I am a biased Petroamerica shareholder and believe the combined company will break out to the upside, so obviously, I want SRN shareholders to vote for the PTA deal.

Always do your own due diligence.