Bidding war continues for Canada’s Inter Pipeline
The bidding war for Canadian midstream infrastructure company Inter Pipeline continued July 15 as Brookfield Infrastructure Partners increased its hostile offer for a second time, to about C$8.58bn (US$6.84bn).
The new offer gives Inter shareholders an option to receive either C$20 in cash or 0.25 Brookfield shares for each Inter share tendered. Brookfield’s previous offer was either C$19.50 in cash or 0.225 Brookfield shares.
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Inter, however, is recommending that its shareholders accept a rival offer from Pembina Pipeline – an all-stock bid worth about C$8.3bn.
Earlier this week, Pembina and Inter were successful in warding off an attempt by Brookfield to have the Alberta Securities Commission (ASC) invalidate a C$350mn break fee in Pembina’s offer. The ASC also ordered Brookfield to increase the acceptance threshold to 55% of the Inter shares it doesn’t already own from 50% in its original bid.
The latest offer from Brookfield will remain open until 5 pm MDT August 6, unless otherwise extended.