OTCPK:ICPVF - Post by User
Comment by
my2pennieson Jun 07, 2021 10:49am
136 Views
Post# 33339851
RE:For your interest
RE:For your interestHow on earth is Brookfield's 74% cash ($19.75) offer remotely attritive?!?!
It's more a slap in the face to IPL shareholders. Their offer assumes that IPL shareholders are completr imbeciles (which we are not). For anyone who wants cash they can literally get a far better deal by selling their IPL shares at $20.00+ right now on the open market.
incomedreamer11 wrote:
The Brookfield offer has several attractive components. It is 74% cash with the remainder in Brookfield Infrastructure Partners stock and can close in 20 days with no additional approvals.
Pembina’s offer would require multiple regulatory and shareholder approvals, and the expected close would be in the fourth quarter. That said, if Brookfield is successful, Inter will owe a CAD 350 million breakup fee to Pembina.
Brookfield noted that Inter Pipeline management had finally allowed it access to the data rooms on May 14, and so it was able to initially bid CAD 19.50 per share for the company and now CAD 19.75.
Inter Pipeline's management team hasn't acted in shareholders' best interests up to this point. We think it reflects poorly on managment on agreement Pembina
without securing conditions such as a collar, knowing Brookfield had a competing offer at CAD 19.50 with a sizable cash component. A stock price collar could have secured a floor price, ensuring that Pembina’s offer would remain around CAD 19.75, likely ensuring an even richer counteroffer from Brookfield.Management to agree to such a large breakup fee and accept a 100% stock offer