Analyst Note| Stephen Ellis |
Brookfield Infrastructure Partners has made a compelling CAD 19.75 per share offer in cash and stock to acquire Inter Pipeline. This offer appears superior to Pembina Pipeline's announced combination with Inter Pipeline on June 1 for 0.5 share of Pembina stock, which is worth CAD 19.14 currently, for each share of Inter Pipeline. With Inter Pipeline's stock trading above CAD 20, the market clearly anticipates a higher counteroffer from Pembina. We have adjusted our fair value estimate for Inter Pipeline to CAD 19.75 but recognize that new and higher offers are very likely in the near future. Pembina remains under review.