Brookfield Infrastructure Offers to Acquire Inter Pipeline

Brookfield Infrastructure (NYSE: BIP)(NYSE: BIPC) unveiled an offer to take Canadian energy infrastructure operator Inter Pipeline (TSX: IPL) private. It's willing to pay at least 16.50 Canadian dollars ($13.03) for each share it doesn't currently own, a 23% premium from the recent closing price. But Brookfield could raise its bid if Inter Pipeline allows it to complete its due diligence.

Brookfield is offering CA$16.50 per share in cash or 0.206 shares of Brookfield Infrastructure Corporation for each share of Inter Pipeline that it doesn't currently own. It's already Inter Pipeline's largest shareholder at a 19.6% interest.

It picked up its initial stake in Inter Pipeline (and several other publicly traded infrastructure companies) during last year's stock market sell-off in hopes it would lead to a larger transaction. Brookfield has tried to negotiate with Inter Pipeline on a privatization transaction, but Inter has declined to engage constructively on a deal.

Source Fool.com