Inter Pipeline continues to support Pembina deal after improved Brookfield offer

Inter Pipeline's Heartland Petrochemical Complex in Fort Saskatchewan, Alta. is shown in this undated handout photo. (THE CANADIAN PRESS/HO, Inter Pipeline)

The board of directors at Inter Pipeline Ltd. says it still supports a takeover deal the company signed with Pembina Pipeline Corp., despite an increased offer from Brookfield Infrastructure Partners.

Inter Pipeline says the board continues to unanimously recommend the Pembina deal, which it says is strategic for both companies.

Brookfield Infrastructure raised its hostile offer for Inter Pipeline on Wednesday to top the company's friendly deal with Pembina.

The new bid was valued at $19.75 per Inter Pipeline share including 74 per cent in cash and 26 per cent in shares. The proposal is up from an earlier offer valued at $16.50 per share.

Inter Pipeline's all-stock deal with Pembina would see shareholders receive half a Pembina share for each Inter Pipeline share they hold.

Pembina shares closed at $38.02 on Wednesday.

This report by The Canadian Press was first published June 3, 2021.