• Natural Gas News

    Bidding war continues for Canada’s Inter Pipeline

Summary

Brookfield has sweetened its offer after defeat before regulators.

by: Dale Lunan

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Complimentary, Natural Gas & LNG News, Americas, Corporate, Mergers & Acquisitions, Infrastructure, , News By Country, Canada

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.