Brookfield gives Inter Pipeline shareholders option to take cash in hostile takeover offer

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Under the latest proposal, Inter investors can take cash or Brookfield stock

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Brookfield Infrastructure Partners LP revised the terms of its $6.77 billion hostile takeover offer for Canada’s Inter Pipeline Ltd., giving all shareholders the option to take cash.

Under the latest proposal, Inter investors can elect to take cash valuing their shares at $19.50 apiece, or they can receive Brookfield stock at a valuation of $19.99.

Brookfield also said in a statement Friday it would raise its offer to an aggregate value of $20.40 pending the outcome of a decision by regulators over the size of the the break fee associated with the rival takeover offer for Inter from Pembina Pipeline Corp.

The battle for Canada’s fourth-largest pipeline company follows years of failed attempts to build major projects like TC Energy Corp.’s Keystone XL and Enbridge Inc.’s Energy East, potentially making existing pipelines more valuable. Inter owns pipeline infrastructure across Western Canada, connecting oil and natural gas producers with domestic and foreign customers.

Bloomberg.com