Brookfield Infrastructure Partners LP has revised its hostile takeover bid for Inter Pipeline Ltd. to give shareholders the option of receiving their full payment in cash, instead of a combination of cash and shares, if they so choose.
The company also says it is ready to increase its bid if it succeeds in challenging a $ 350 million severance fee that Inter Pipeline must pay if it cancels its friendly share purchase agreement by Pembina Pipeline Corp.
Brookfield Infrastructure says it is removing a cap of $ 5.56 billion on the amount of liquidity available under its proposal after what it says is comments from institutional and event investors.
Inter Pipeline’s agreement with Pembina would allow shareholders to receive half a Pembina share for each Inter Pipeline share they own.
Brookfield Infrastructure offered $ 19.50 in cash or 0.225 Class A exchangeable share of Brookfield Infrastructure for each Inter Pipeline share.
He says he’s ready to increase the cash supply to 90 cents a share if he succeeds in his challenge of reducing or eliminating Pembina’s breakout fees.
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