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.”

Get local stories you won't find anywhere else right to your inbox.
Sign up here

Just Posted

Still no confirmed active COVID-19 cases in Red Deer, central zone

There are still no confirmed active COVID-19 cases in Alberta’s central zone,… Continue reading

Self-cloning carp are in the Red Deer River — and could end up on fishing lines

These fish are hard to eradicate and are copious breeders

Lacombe County’s Sandy Point Beach reopens

Beach and washroom facilities opens on Friday

VIDEO: British Columbia bear takes a nap in eagle tree

Videos captured by Terry Eissfeldt shows the bear arriving Saturday night and sleeping in on Sunday

Spiritual needs of vulnerable federal inmates unmet during pandemic: chaplains

Spiritual needs of vulnerable federal inmates unmet during pandemic: chaplains

New Brunswick’s first COVID-19 death linked to nursing home outbreak

New Brunswick’s first COVID-19 death linked to nursing home outbreak

Trudeau, and an unexpected Trump, urge COVID-19 co-operation at vaccine summit

Trudeau, and an unexpected Trump, urge COVID-19 co-operation at vaccine summit

New Canadian modelling shows COVID-19 waning but relaxing restrictions still risky

New Canadian modelling shows COVID-19 waning but relaxing restrictions still risky

Former Bank of Canada governor Stephen Poloz joins Enbridge board of directors

Former Bank of Canada governor Stephen Poloz joins Enbridge board of directors

CMHC tightens lending standards to protect housing market during COVID-19

CMHC tightens lending standards to protect housing market during COVID-19

First Nations, environmentalists ask for restart of oilpatch monitoring

First Nations, environmentalists ask for restart of oilpatch monitoring

TSX ends three-day winning streak to start June despite rising crude

TSX ends three-day winning streak to start June despite rising crude

Most Read