March 11 (Reuters) – Investment firm Brookfield Infrastructure Partners said on Thursday it is committed to its C$7.1 billion ($5.65 billion) hostile takeover offer for Inter Pipeline Ltd despite the pipeline company’s board turning down the bid.
The largest individual shareholder in Inter Pipeline said it welcomes the board’s “efforts to market test the offer against other take-private proposals”, adding that its offer is in the best interest of the Canadian company’s shareholders.
Inter Pipeline on Tuesday asked its shareholders to reject the offer, saying it “significantly undervalues” the oil and gas transportation company.
Brookfield last month launched a hostile bid with the same C$16.50 per share offer that Inter Pipeline had previously rejected as inadequate.
The investment company had also said it was willing to raise its offer to as much as C$18.25 per share if the pipeline company comes to the negotiating table, but Inter turned it down and later launched a strategic review of options, which could include a “corporate transaction”.
Inter Pipeline, which expects a superior offer or other alternatives to emerge, also previously said it is looking for a partner for its C$4 billion Heartland Petrochemical Complex in Alberta that is due to start operating early next year. ($1 = C$1.26) (Reporting by Arundhati Sarkar in Bengaluru; Editing by Devika Syamnath and Maju Samuel)