Inter Pipeline Confirms Takeover Bid, But Not In Talks To Sell

Heartland Petrochemical Complex. Image: Inter Pipeline.

(Reuters) — Inter Pipeline Ltd. confirmed on Friday it received an unsolicited takeover bid, but said it was not in talks to sell.

Inter Pipeline’s shares were halted on Friday, after a two-day rally sparked by a report of an offer for the oil pipeline and storage company.

In a statement, the company said it was confirming the offer at the request of the Investment Industry Regulatory Organization of Canada (IIROC).

“Inter Pipeline confirms that it received an unsolicited, non-binding, conditional and indicative proposal to purchase the company but it is not in negotiations with any third party, nor is there any agreement, understanding or arrangement with respect to any such transaction,” it said in a statement.

The company had refused to address the report during its quarterly conference call earlier on Friday.

Shares jumped nearly nine per cent on Thursday after the Globe and Mail newspaper reported that the company had received a takeover offer from an unnamed suitor that could be worth C$12.4 billion ($9.37 billion). The Globe reported that Inter Pipeline’s board turned down the cash offer worth C$30 per share.

The stock gained another 3.9 per cent on Friday before the halt, hitting a nearly one-year high of C$24.82 in Toronto.