National Post (National Edition)

Inter Pipeline evaluating revised bid


Inter Pipeline Ltd. is evaluating a formal revised $8.6 billion offer from Brookfield Infrastruc­ture Partners LP to buy Canada's fourth-largest midstream company after rival suitor Pembina Pipeline Corp. said it wouldn't raise its own bid for the company.

Brookfield agreed last Thursday to lift the cash portion of its offer by 2.6 per cent to $20 for each Inter Pipeline share in a push to break up a friendly, all-share takeover by Pembina. Friday, Pembina declined to increase or change its offer of 0.5 of its common shares for all the common shares of Inter Pipeline. Brookfield's formal revised offer was filed Monday, Breanne Oliver, a spokeswoma­n for Inter Pipeline, said. “Inter Pipeline's board has a fiduciary duty to review and consider all other offers for the business, including the revised offer from Brookfield, which is currently under review by Inter Pipeline's Special Committee.”

The Pembina deal was dealt a blow over the weekend when Institutio­nal Shareholde­r Services Inc., a prominent shareholde­r advisory firm, recommende­d investors reject Pembina and instead support Brookfield's hostile offer.

Inter Pipeline is now left to decide the next move in a takeover saga that started in February with an unsolicite­d $7.1 billion offer by Brookfield Infrastruc­ture that was rejected by Inter Pipeline's board. Inter Pipeline announced an agreement with Pembina on June 1, and Brookfield has since revised its offer three times. Shareholde­rs are scheduled to vote on the Pembina offer July 29.

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