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Noah Zivitz

Managing Editor, BNN Bloomberg

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Brookfield Infrastructure Partners L.P. isn’t giving up on its hostile attempt to buy Inter Pipeline despite facing a regulatory setback.

Brookfield announced Tuesday morning that it will extend its offer to Aug. 6 and said it will make the necessary adjustments to comply with a ruling by the Alberta Securities Commission (ASC) on Monday. The offer had been scheduled to expire later Tuesday. 

The ASC admonished Brookfield late Monday for its use of “abusive” tactics and also hiked the tender requirement from a simple majority of Inter Pipeline shares that Brookfield doesn’t currently own to a threshold of 55 per cent. 

“Although Brookfield Infrastructure disagrees with aspects of the decision, it intends to revise the offer to comply with the terms of the decision. Notwithstanding that there has been no reduction in the break fee, Brookfield Infrastructure is considering further enhancements to the offer,” the company said in its release.

Brookfield has been locked in a months long battle with Pembina Pipeline for control of Inter Pipe. Pembina has a friendly all-stock arrangement in place to acquire Inter Pipeline. Brookfield, meanwhile, is offering $19.50 per share in cash or 0.225 of a Brookfield Infrastructure Corp class A share.