Post by
poopoopoo on Jun 02, 2021 2:31pm
breakup fee potential
My cost on my Pembina is $24 so I guess I am an idiot who likes making money. lol.
I was hoping to get out at $44 but with this competing bid and Brookfield trying to bid them up those goals are now likley gone.
People here must be very naive to assume that the Heartland project will get built and runnning when they say it will as I have seen many projects get built only to find out the welds were inferior or something else and then costs and debt go up substantially. If you are blind to this risk then good for you. One only needs to look at the nearbye Northwest refinery that was supposed to be completed in 2016 and was then delayed to 2019 along with a massive additional debt of billions in dollars.
Brookfiled is trying to buy Interpipeline as cheap as possible but I do not suspect they will go much higher due to the risks.
Pembina would be wise to stand firm and not raise their bid or they will end up like Altagas who overpaid for an asset only to see their share price collapse as they then endured years of assets sales and high debt to manage.
Whenever there are takevovers or mergers you want to own the company being aquired not the acquirer who ends up with all the debt and the sleepless nights of a project that you pray will get completed on time, wiothout many more cost overuns, and a smooth startup witout finding engineering errors that can be a nighmare.
I am hoping that Pembina stands firm and if that happens may hold as the potential for a breakup fee payout would be gravy.
If I find them falling for Brookfields ploy and raising their price then yah I am taking profits and will revist a year or so from now once see the Heartland is actually up and running.
Comment by
Samcallari on Jun 04, 2021 1:54pm
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