Pembina backs Inter Pipe offer despite Brookfield sweetener – .

0
9
Pembina backs Inter Pipe offer despite Brookfield sweetener – .


Pembina Pipeline Corp. does not budge on the terms of its friendly merger agreement with Inter Pipeline Corp. despite renewed competition in the takeover.
In a statement released Friday evening, Pembina said it “does not intend to increase or otherwise change” the agreement in place to provide 0.5 shares for every share of Inter Pipeline.

“Pembina believes its strategic combination with Inter Pipeline is extremely compelling from an immediate and long-term value perspective and believes shareholders should vote in favor of the transaction,” the company said in the statement.

The stand-pat strategy comes a day after Brookfield Infrastructure Partners LP announced plans to increase its hostile bid on Inter Pipeline to $ 20 per share in cash or 0.25 share in Brookfield Infrastructure Corp. for each share held by Inter Pipeline investors. The Brookfield share offering is prorated.

Based on Friday’s closing prices on the Toronto Stock Exchange, Pembina’s offer was worth $ 19.40 per share. Brookfield’s stock offering, by comparison, was worth $ 22.49 per share.

For its part, Inter Pipeline said Thursday that its special board of directors will consider Brookfield’s revised offer when and if it is formally presented.

Inter Pipeline’s deal with Pembina is expected to be voted on by shareholders on July 29.



LEAVE A REPLY

Please enter your comment!
Please enter your name here