Business

Inter Pipeline board rejects unsolicited takeover offer by Brookfield

The board of directors at Inter Pipeline Ltd. has unanimously rejected a hostile takeover offer by Brookfield Infrastructure Partners LP.

Brookfield has hinted that it would consider raising its offer price of $16.50 a share

Inter Pipeline Ltd.'s Heartland Petrochemical Complex, just east of Edmonton, is a roughly $4-billion project designed to use propane to make polypropylene, a high-value plastic. Brookfield is trying to buy Inter Pipeline for $16.50 a share. (Inter Pipeline Ltd.)

The board of directors at Inter Pipeline Ltd. has unanimously rejected a hostile takeover offer by Brookfield Infrastructure Partners LP.

The company says the board's decision followed careful consideration, including advice from its financial and legal advisers, and the recommendation of a special committee of independent directors.

The board called the bid highly opportunistic and says it does not reflect the company's full and fair value.

It added that a strategic review of alternatives is already underway.

Brookfield is offering $16.50 per share in cash or 0.206 of a Brookfield Infrastructure Corp. class A exchangeable share, with the maximum cash available set at $4.9 billion.

Brookfield has said it previously discussed prices with Inter Pipeline "in the range of $17 to $18.25" per share but would need to study its books before increasing its offer.

Comments

To encourage thoughtful and respectful conversations, first and last names will appear with each submission to CBC/Radio-Canada's online communities (except in children and youth-oriented communities). Pseudonyms will no longer be permitted.

By submitting a comment, you accept that CBC has the right to reproduce and publish that comment in whole or in part, in any manner CBC chooses. Please note that CBC does not endorse the opinions expressed in comments. Comments on this story are moderated according to our Submission Guidelines. Comments are welcome while open. We reserve the right to close comments at any time.

Become a CBC Member

Join the conversation  Create account

Already have an account?

now