IPPLF - ISS favors Brookfield's hostile Inter Pipeline bid over Pembina offer

CHENG FENG CHIANG/iStock via Getty Images Shareholder advisory firm Institutional Shareholder Services recommends investors reject Pembina Pipeline's ([[PBA]] -0.2%) offer to buy Inter Pipeline ([[IPPLF]] -5.3%) and instead support Brookfield Infrastructure Partners' ([[BIP]] -2.5%) hostile offer. "The combination with PPL carries execution risk and shareholders have also been offered a higher competing bid from BIP which has financing certainty, no regulatory risk, and an all-cash option," ISS says. "Absent an improvement of terms from PPL, shareholders appear to be better off with the riskless option from BIP's deal." Combined with Pembina's statement that it would not raise its offer for Inter Pipeline, Brookfield says the ISS recommendation reinforces its belief that its Inter Pipeline proposal is "superior and that IPL shareholders should vote against the alternative transaction." Brookfield revised its offer for Inter Pipeline last week to C$21.23 for each share on a prorated basis.

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ISS favors Brookfield's hostile Inter Pipeline bid over Pembina offer