By Michael Dabaie

Inter Pipeline Ltd. said its board continues to recommend a deal to combine with Pembina Pipeline Corp. after Brookfield Infrastructure Partners LP said it would revise its offer for the company.

Pembina on Tuesday said it would acquire Inter Pipeline in a share-for-share deal that values Inter Pipeline common shares at 19.45 Canadian dollars (US$16.16) a share, based on the closing price of Pembina's common shares on May 31.

Brookfield Infrastructure on Wednesday said it would file a revised cash and share offer directly to Inter Pipeline shareholders valued at C$19.75 a share by no later than Friday. Brookfield Infrastructure in February said it had commenced a formal offer to acquire all of the outstanding common shares of Inter Pipeline Ltd.

Brookfield declined to comment on Thursday.

Inter Pipeline said the proposed variation to the Brookfield bid appears to be on substantially the same economic terms as the private proposal Brookfield made to Inter Pipeline on Monday. After considering the Brookfield proposal and the proposed Pembina transaction, the Inter Pipeline board was of the view that the proposed Pembina transaction is financially superior, Inter Pipeline said.

"Both proposals had substantially equivalent 'headline numbers,' however, the Inter Pipeline Board was of the view that the proposed Pembina Transaction provided considerable incremental value for shareholders," Inter Pipeline said.

Write to Michael Dabaie at michael.dabaie@wsj.com

(END) Dow Jones Newswires

06-03-21 0953ET