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Brookfield considers revising offer to buy Inter Pipeline

July 13, 20216:55 AM Reuters0 Comments

Brookfield

Brookfield Infrastructure Partners LP said on Tuesday it was considering “further enhancements” to its offer to buy Canada’s Inter Pipeline Ltd.

The news comes a day after the Alberta Securities Commission (ASC) ruled that Inter did not engage in any improper defensive tactics to fend off a hostile takeover bid from Brookfield, which had alleged that Inter’s tactics favored an offer from Pembina Pipeline Corp.

Calgary-based Inter modified its shareholder rights plan in response to Brookfield’s unsolicited bid in February and launched a strategic review looking for other suitors, which culminated in rival bidder Pembina making a C$8.3 billion all-stock proposal.

Brookfield last month revised its C$8.48 billion ($6.81 billion) buyout offer to include an all-cash option.

Inter’s board has recommended Pembina’s deal, which included a C$350 million break fee to shareholders.

Brookfield last month filed an application with the regulator to do away with Inter’s termination fee to Pembina, saying it would increase its takeover offer for Inter if the fee was reduced or eliminated.

On Tuesday, the infrastructure fund said it was considering further enhancements to the offer, notwithstanding that there has been no reduction in the break fee to Pembina. It did not specify what the enhancements could include.

Brookfield said in June it was prepared to raise its offer by C$0.901 to C$20.401 per Inter share, pending the outcome of its challenge before the Alberta securities regulator.

The ASC on Monday criticized Brookfield for its use of securities known as total return swaps.

Brookfield said it plans to revise its offer to comply with the terms of the decision.

Brookfield, whose offer was set to expire on Tuesday, said the expiry time had been extended till Friday.

Inter Pipeline Pembina Pipeline

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