Inter Pipeline Board Recommends Brookfield's Revised Offer

By Adriano Marchese

The board of Inter Pipeline Ltd. said late Tuesday it is now recommending the acceptance of Brookfield Infrastructure Partners LP's revised takeover offer, after its arrangement with Pembina Pipeline Corp. was terminated.

Under the revised offer, each Inter Pipeline shareholder will be able to choose to receive 20 Canadian dollars (US$16) in cash or 0.25 of a Brookfield Infrastructure class-A exchangeable subordinate voting share, the company said.

On Monday, the Canadian energy infrastructure company said its board would no longer reconfirm its recommendation in favor of a combination with Pembina, and agreed to pay a C$350 million breaking fee to the company.

"The board has concluded that the value and flexibility inherent in the revised Brookfield offer, including the significant cash component of the offer and the option for a potential tax-deferred rollover for certain Canadian shareholders, makes it appropriate to recommend acceptance of the revised Brookfield offer to our shareholders," the company said.

Write to Adriano Marchese at [e-mail]

(END) Dow Jones Newswires

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