Brookfield sweetens bid for Inter Pipeline with all-cash offer

Brookfield Infrastructure Partners LP has revised its hostile takeover offer for Inter Pipeline Ltd. to give shareholders the option to receive their entire payment in cash, instead of a mix of cash and shares, if they desire.

The company also says it is prepared to increase its bid if it is successful in challenging a $350-million break fee Inter Pipeline must pay if it calls off its friendly all-stock deal to be bought by Pembina Pipeline Corp.

Brookfield Infrastructure says it eliminating a $5.56-billion cap on the amount of cash available under its proposal after what it says was feedback from institutional and event-driven investors.

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

Brookfield Infrastructure has offered $19.50 in cash or 0.225 of a Brookfield Infrastructure class-A exchangeable share for each Inter Pipeline share.

It says it is prepared to increase the cash offering by up to 90 cents per share if it is successful in its challenge to reduce or eliminate the Pembina break fee.