Pembina Pipeline Corp T.PPL

RE:RE:RE:RE:PPL/Heartland

[micromike]

It's probably infered from the G&M article. 

Inter Pipeline Ltd

 

 is abandoning its friendly merger with Pembina Pipeline Corp. but has chosen not to immediately support a rival hostile bid from Brookfield Infrastructure, even though no other offers are on the table.

Brookfield’s bid is set to expire on Aug. 6, and some analysts say Pembina could buy some Inter Pipeline assets from Brookfield to make the deal a more manageable size. 

In a note to clients on Monday, RBC Dominion Securities analyst Robert Kwan said he is monitoring whether “a transaction involving a split of the assets with Pembina might come together, whether that be as part of a revised Brookfield Infrastructure offer or following the close of a sale of Inter Pipeline to Brookfield.”

In a statement on Monday, Inter Pipeline said it is “open to engaging with Brookfield in an effort to reach a mutually agreeable transaction in the best interests of shareholders,” while in a separate statement Brookfield said it expects Inter Pipeline’s special committee of board directors to recommend its current bid.

When Brookfield updated its offer in mid-July, the company disclosed it had previously sent a letter to Pembina’s chief executive officer indicating a willingness to acquire some “lower risk, lower return assets.” Meanwhile, in its merger circular, Pembina disclosed it originally approached Inter Pipeline about a smaller deal for “certain assets” after Brookfield launched the hostile bid.