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Inter Pipeline Says Brookfield's offer Below Fair Value

(Reuters) - Canada’s Inter Pipeline Ltd said on Thursday that an unsolicited offer of up to C$18.25 ($14.41) per share from Brookfield Infrastructure Partners did not reflect the true value of the company.

Brookfield, a company that acquires and manages infrastructure assets, offered C$16.50 per share on Wednesday, a 23% premium to the stock’s prior closing price, and said it was willing to raise it to as much as C$18.25 if the pipeline operator gave it access to due diligence.

At the top price, the offer would value Inter’s equity at C$7.8 billion. Inter said that was not sufficient for the company to enter into exclusive talks with the infrastructure firm.

The pipeline operator said Brookfield has not made a formal offer yet and if it does, the company’s board will review with advisors and recommend shareholders about accepting or rejecting it.

($1 = 1.2669 Canadian dollars)

Reporting by Shariq Khan in Bengaluru; Editing by Arun Koyyur

Source: Reuters


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