Brookfield offer spurs Inter Pipeline to explore its options | #firefox | #firefoxsecurity

Has hired TD Securities for advice and will strike a special committee of the board to look at range of options

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Canada’s Inter Pipeline Ltd. said it will start a review of strategic alternatives after it received a hostile takeover offer from Brookfield Infrastructure Partners LP.

The pipeline operator said it’s hired TD Securities for advice and will strike a special committee of the board, led by Margaret McKenzie, to look at range of options “including exploring a possible corporate transaction.” JPMorgan Chase & Co. will advise the committee.

Brookfield Infrastructure said last week it will offer $16.50 per share in cash or stock and has amassed a 19.6 per cent economic stake in Inter Pipeline through shares and derivatives, making it the Calgary-based company’s largest investor.

Brookfield said it first approached Inter Pipeline in September and subsequently made takeover proposals at a premium of as much as 50 per cent to the company’s share price at the time. It said Inter “declined to engage constructively” on a deal and took an optimistic view of its future growth potential.

Inter Pipeline operates oil pipelines in Alberta and Saskatchewan as well as natural gas liquids processing plants. It’s looking for a partner to buy a stake in the $4 billion Heartland Petrochemical Complex (HPC), which is under construction in Alberta.

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