The Pembina deal was dealt a blow over the weekend when Institutional Shareholder Services Inc., a prominent shareholder advisory firm, recommended investors reject Pembina and instead support Brookfield’s hostile offer.
Inter Pipeline is now left to decide the next move in a takeover saga that started in February with an unsolicited C$7.1 billion offer by Brookfield Infrastructure that was rejected by Inter Pipeline’s board. Inter Pipeline announced an agreement with Pembina on June 1, and Brookfield has since revised its offer three times. Shareholders are scheduled to vote on the Pembina offer on July 29.
The fight over Inter Pipeline follows years of failed attempts to build major projects like TC Energy Corp.’s Keystone XL and Enbridge Inc.’s Energy East, which may have made existing lines more valuable. Inter Pipeline owns conduits across Western Canada, connecting oil and natural gas producers with domestic and foreign customers, as well as storage assets in Europe.