Inter Pipeline execs refuse to answer questions on reported takeover offer

Companies in this article: (TSX:IPL) The Canadian Press CALGARY — Executives with Inter Pipeline Ltd. are refusing to confirm or deny a report that a potential buyer recently made a $30 per share offer for the company.The report in a Thursday morning article in the Globe and Mail, which didn’t identify the bidder and quoted unnamed sources as saying the offer was rejected, was linked to a nine per cent Inter stock price surge to $23.64 on the Toronto Stock Exchange on Thursday.Inter shares continued to rise on Friday, up four per cent to $24.60 at noon EDT, about half an hour after a conference call in which both CEO Christian Bayle and chief financial officer Brent Heagy refused to answer analyst questions about the story.The executives did provide detail about a separate announcement Thursday after markets closed that the midstream company is putting its European bulk petroleum storage business on the block — it has operations in the U.K., Denmark, Sweden, Germany, Netherlands and Ireland with about 37 million barrels of storage capacity.Bayle says the sale has been contemplated for some time and formed part of the rationale for buying NuStar Energy’s European storage business for $354 million last fall because its fit with its existing European storage assets made a better package.Inter reported record second-quarter net income of $260 million, nearly double the $136 million it declared in the same period of 2018, with the increase mainly resulting from a one-time $144-million provision resulting from the staged reduction in the Alberta corporate income tax rate from 12 to eight per cent by 2022.Inter also reported a slight rise in revenue to $642 million from $631 million and a decrease in its core pipeline volumes to 1.34 million barrels per day from 1.38 million bpd a year earlier. read more