Varun Anand discusses Inter Pipeline
Inter Pipeline Ltd. has pulled the plug on its friendly takeover arrangement with Pembina Pipeline Corp.
In a release early Monday, Inter Pipeline announced that its board of directors will not stand by an earlier recommendation for shareholders to vote in favour of the all-stock takeover by Pembina. As a result, Inter Pipeline will pay a $350-million break fee.
“While we are disappointed with this outcome, we will continue to seek opportunities for growth through focused acquisitions,” said Pembina Pipeline President and Chief Executive Officer Mick Dilger in a separate release.
Despite breaking away, Inter Pipeline is not yet throwing its full support behind the latest hostile offer from Brookfield Infrastructure Partners L.P.
“Inter Pipeline's Board of Directors is open to engaging with Brookfield in an effort to reach a mutually agreeable transaction in the best interests of shareholders,” the company said in its release Monday, adding that it plans to make a formal recommendation in due course.
Brookfield had been attempting for months to break up Inter Pipeline’s deal with Pembina. In its recently sweetened hostile offer, Brookfield said it would offer either $20 in cash or 0.25 of a Brookfield Infrastructure Corp. class A share for every Inter Pipeline common share.