TORONTO — Brookfield Infrastructure Partners LP has revised its hostile takeover offer for Inter Pipeline Ltd. to give shareholders the option to receive their entire payment in cash, instead of a mix of cash and shares, if they desire.

The company also said Friday it is prepared to increase its bid if it is successful in challenging a $350-million break fee Inter Pipeline must pay if it calls off its friendly all-stock deal to be bought by Pembina Pipeline Corp.

Brookfield Infrastructure said it was eliminating a $5.56-billion cap on the amount of cash available under its proposal after what it says was feedback from institutional and event-driven investors.

“We believe an all-cash option provides superior value and flexibility,” the company said in a statement.

Inter Pipeline’s deal with Pembina would see shareholders receive half a Pembina share for each Inter Pipeline share they hold.

Brookfield Infrastructure has offered $19.50 in cash or 0.225 of a Brookfield Infrastructure class-A exchangeable share for each Inter Pipeline share.

It said it is prepared to increase the cash offering by up to 90 cents per share if it is successful in its challenge to reduce or eliminate the Pembina break fee.

Inter Pipeline has urged shareholders to reject the Brookfield Infrastructure offer and said the Pembina deal is strategic for both companies.

Pembina said Friday its offer is superior in value with greater upside for Inter Pipeline shareholders.

“The logic of the Pembina IPL combination is clear and we look forward to continuing our process to close the transaction,” the company said in a statement.

The boards of Pembina and Inter Pipeline have unanimously approved their deal which also requires approval by a two-thirds majority vote by Inter Pipeline shareholders. A simple majority vote by Pembina shareholders is also needed.

Inter Pipeline shares were down 16 cents at $20.21 in trading on the Toronto Stock Exchange, while Pembina shares were down 23 cent sat $40.48. Brookfield Infrastructure class-A exchangeable shares were up 48 cents at $89.31.

This report by The Canadian Press was first published June 18, 2021.

Companies in this story: (TSX:IPL, TSX:PPL, TSX:BPIC, TSX:BIP. UN)

The Canadian Press