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By Reuters Staff
2 Min Read
Feb 22 (Reuters) - Brookfield Infrastructure Partners said on Monday it formally launched its hostile bid to buy Inter Pipeline Ltd, weeks after the Canadian oil and gas transportation company rejected its unsolicited offer as inadequate.
Brookfield, which acquires and manages infrastructure assets, is offering C$16.50 per share for Inter, valuing Inter at C$7.08 billion ($5.62 billion).
Earlier this month, Brookfield said it was willing to raise its offer to as much as C$18.25 per Inter share if the company had come to the negotiating table, but Inter turned it down and later launched a strategic review of options.
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Inter said that was not sufficient for it to enter into exclusive talks with the infrastructure firm.
The pipeline operator said Brookfield has not made a formal offer and if it does, the company’s board will review it with advisors. Brookfield declined further comment.
Brookfield’s offer is low, but serious enough that Inter Pipeline should negotiate, said Rob Thummel, managing director of TortoiseEcofin, Inter Pipeline’s eighth-largest shareholder according to Refinitiv.
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“I think they should absolutely look at it and consider it,” he said. A rival bid seems unlikely given that the energy sector is focused on repaying debt and buying back shares, not acquisitions, he said.