Canada’s Inter Pipeline Ltd. told shareholders to accept a $8.6 billion hostile takeover offer from Brookfield Infrastructure Partners LP, days after walking away from a friendly deal with Pembina Pipeline Corp.
The move pushes the months-long battle for Canada’s fourth-largest midstream company closer to a resolution. Brookfield sweetened its bid on July 15 to win over Inter Pipeline shareholders, while prominent advisory firms Institutional Shareholder Services Inc. and Glass Lewis & Co. recommended that investors vote against Pembina’s all-share offer.
Pembina and Inter Pipeline terminated their agreement on Monday, leaving Brookfield as the only remaining bidder.
“To maximize shareholder value we ran a fair and comprehensive strategic review and as a result Brookfield increased its offer by approximately 21%,” Inter Pipeline Chair Margaret McKenzie said in a statement Tuesday night. The improved terms make it “appropriate to recommend acceptance of the revised Brookfield offer to our shareholders.”
(Bloomberg News)
