Noah Zivitz

Managing Editor, BNN Bloomberg

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Brookfield Infrastructure Partners L.P. is making another attempt to woo Inter Pipeline Ltd.’s investors by again raising the stakes in its takeover battle with Pembina Pipeline Corp.

In a release early Thursday, Brookfield announced its intent to raise its offer to $20.00 per share in cash or 0.25 of a Brookfield Infrastructure Corp. share for each Inter Pipeline share. The latter would be subject to proration. Brookfield said it expects to formally file the revision by July 19. 

Brookfield’s most recent offer was for $19.50 per share in cash or 0.225 of a share for each share held by Inter Pipeline’s investors. By comparison, Inter Pipeline has a friendly arrangement in place to be acquired by Pembina Pipeline in an all-stock deal with an exchange ratio of 0.5 of a share for each Inter Pipeline share. That deal is scheduled to go to a vote on July 29. 

The sweetener from Brookfield isn’t unexpected. Earlier this week, it said it was considering “enhancements” after being admonished by the Alberta Securities Commission for what the regulator described as “abusive” tactics in the takeover fight. 

Brookfield also pulled back the curtain Thursday on what it claims has been happening behind the scenes. In its release, Brookfield said it reached out to Inter Pipeline Chair Margaret McKenzie and Pembina Pipeline CEO Mick Dilger to communicate its desire to acquire “certain lower risk, lower return assets” owned by Inter Pipeline, which it said it would allow Pembina to boost the value of its friendly takeover bid.

However, Brookfield said it was “promptly” rebuffed by a special committee of Inter Pipeline’s directors.