Inter Pipeline shares lose some of last week’s takeover speculation gains

CALGARY — Shares in Inter Pipeline Ltd. fell by as much as 4.3 per cent Monday morning after soaring late last week on news that it had rejected an unsolicited takeover from an unnamed bidder.

On the Toronto Stock Exchange, shares in the Calgary petroleum transportation and processing company fell by $1.06 to $23.75 before recovering to $24.10 by 11 a.m. EDT.

During a conference call Friday to discuss second-quarter results, company executives refused to comment on a Globe and Mail report that cited unnamed sources regarding a $30-per-share cash offer.

In mid-afternoon, however, after trading was halted, Inter issued a brief statement confirming there had been “an unsolicited, non-binding, conditional and indicative proposal,” without giving any details about the date, price or the identity of the bidder.

RBC Dominion Securities analyst Robert Kwan speculated in a report that the bidder is likely a private entity with access to project funding at a lower cost than through public markets.

He said it seems unlikely that a peer would bid for Inter, given negative public market sentiment towards its funding plan for the $3.5-billion Heartland Petrochemical Complex it is building northeast of Edmonton.

“It remains to be seen if this party approaches the board again,” the report notes.

“If the board does not engage, we see uncertainty with respect to whether the party is willing to make an unsolicited offer as: (1) the party may not be willing to take on the stigma of a hostile bid and (2) presumably the party sees value in HPC and with the project under construction, management being distracted with the bid could jeopardize the timing and cost of the HPC construction.”

Just Posted

Ad firm says controversial billboards promoting Bernier’s party staying up

OTTAWA — The owner of billboards currently showcasing ads that seek to… Continue reading

14 year old and family need community support after teen hit by car

A 14 year old and his family need financial help after the… Continue reading

Police say someone fired paintballs at people outside drug consumption site in Lethbridge

LETHBRIDGE, Alta. — Police in southern Alberta are investigating after they say… Continue reading

Is federal carbon tax killing jobs? Experts say answer isn’t ‘black and white’

REGINA — The Saskatchewan government says the federal carbon tax is killing… Continue reading

New book assesses Trudeau government’s record of living up to pledges

OTTAWA — A new book arriving on the eve of the federal… Continue reading

WATCH: Snakes, lizards and more at the Western Canadian Reptile Expo in Red Deer

The 10th annual Western Canadian Reptile Expo is this weekend in Red… Continue reading

Your community calendar

Tuesday and Sept. 3 The Tony Connelly Singers provide an opportunity to… Continue reading

A look at policy areas scrutinized by a new book on the Trudeau government

OTTAWA — A group of two dozen Canadian academics took a deep… Continue reading

Father of suspected B.C. killer seeks access to video taken before son’s death

VANCOUVER — The father of a suspected killer of three people in… Continue reading

US tech industry becomes hotbed for employee activism

SAN FRANCISCO — When Liz O’Sullivan was hired at the New York… Continue reading

Jolie shares pride in son Maddox, joining Marvel movie

ANAHEIM, Calif. — Angelina Jolie says she’s “so proud” that her 18-year-old… Continue reading

Extinction bites: countries agree to protect sharks and rays

GENEVA — Countries have agreed to protect more than a dozen shark… Continue reading

Trudeau and Trump hold face to face meeting on sidelines of G7 summit

BIARRITZ, France — Justin Trudeau met face-to-face with U.S. President Donald Trump… Continue reading

Study reveals new details of overseas Cold War intelligence effort by Canadians

OTTAWA — Canada enlisted citizens who travelled to Communist countries during the… Continue reading

Most Read