Canada's Inter Pipeline Ltd. declined a C$12.4 billion takeover offer from Hong Kong-based CK Infrastructure Holdings Ltd., a public company controlled by billionaire Li Ka-shing, in July, the Globe and Mail reported Sept. 5, citing sources familiar with the two companies.
CK Infrastructure offered to buy Inter Pipeline at C$30 per share, representing a 30% premium to the pipeline company's shares at the time of the offer, the sources told the publication. Unnamed analysts and bankers said Inter Pipeline's directors chose to not start discussions with CK Infrastructure as they did not believe they could close the deal, the report said.
Still, CK Infrastructure reportedly remains interested in bidding for Inter Pipeline. The sources added that instead of negotiating only with the holding company, Inter Pipeline would conduct a full-scale auction if it decides to sell, according to the report.
Both Inter Pipeline and CK Infrastructure declined to comment, the publication said.
Inter Pipeline confirmed in August that it received an unsolicited, nonbinding takeover bid from an undisclosed company but said it is not in talks over the matter. The company said there is no "agreement, understanding or arrangement with respect to any such transaction."
The Li family controls Canadian refiner and heavy oil upgrader Husky Energy Inc., which walked away from a C$6.4 billion hostile takeover bid for oil sands producer MEG Energy Corp. in January.
