Brookfield Infrastructure boosts hostile bid for Inter Pipeline

Heartland Petrochemical Complex Image: Inter Pipeline

Brookfield Infrastructure Partners LP raised its hostile offer for Inter Pipeline Ltd. to C$8.6 billion ($6.8 billion) in cash in another push to break Brookfield Infrastructure boosts hostile bid for Inter Pipeline.

Brookfield said Thursday in a statement it will now offer investors C$20 or 0.25 of a share for each Inter Pipeline share. It previously offered C$19.50 in cash or 0.225 of a share.

Inter Pipeline investors who elect to receive stock would get Brookfield Infrastructure Corp. shares worth C$23.85, based on Wednesday’s closing price. Pembina has offered 0.5 of its shares for every Inter Pipeline share; that offer is currently worth C$19.70 a share.

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 lines more valuable. Inter owns pipeline infrastructure across Western Canada, connecting oil and natural gas producers with domestic and foreign customers.

The takeover saga started in February with a C$7.1 billion offer from Brookfield that was rejected by Inter Pipeline’s board. Brookfield sweetened its bid one day after Pembina’s deal to buy Inter was first announced on June 1. Inter recommended shareholders reject Brookfield’s revised offer, siding with Pembina.

© 2021 Bloomberg L.P.

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