Pembina won’t be sweetening bid for Inter Pipeline
By Bloomberg NewsNews
Pembina Pipeline Corp. said it wasn’t going to sweeten its bid for Inter Pipeline Ltd. one day after a new hostile offer for Canada’s fourth-largest midstream company was made by Brookfield Infrastructure Partners LP as the takeover battle intensifies.
The Canadian pipeline company doesn’t intend to increase or change the 0.5 common Pembina shares offered under its proposed acquisition of all common shares of Inter Pipeline, it said in a statement.
“Pembina believes that its strategic combination with Inter Pipeline is extremely compelling from an immediate and long-term value perspective and believes shareholders should vote in favour of the transaction,” the company said.
Pembina is standing its ground after Brookfield Infrastructure said it’s increasing the cash component of its offer on July 15 by 2.6 per cent to $20 for each share of Inter Pipeline, or 0.25 of a Brookfield Infrastructure share, in another push to break up Pembina’s friendly, all-stock takeover.
That increased Brookfield Infrastructure’s hostile offer to $8.6 billion.