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I suspect the latter. IPL shareholders likely want out given IPL's balance sheet and cost/budget overruns on Heartland. ISTM that IPL management has already rebuffed the negotiations to date so Brookfield will go straight to shareholders. I think the majority (especially retail investors) will take it.
 

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Although people are justifiably tired of the performance of this stock, it should be obvious to the owners of this company that this bid IS way too low. If you bought the stock at $10 it will make you a profit, but you will still find it hard to take your $18 plus dollars and find a similar stock of comparable value.

I am a little surprised why PPL and ENB, etc, have not moved up. I would think a few of the sellers today would still want some pipeline exposure in their portfolio, but perhaps all the sellers today are pipeline avoiders now. Hard to tell.
At the current price ($17), IPL isn't really at that much of a discount to PPL. Or TRP, or ENB. You could definitely go over there and also more than double your dividend yield. I think people want out of fossil fuel infrastructure. Institutions especially. I fully believe this is only a discussion around price, not about whether it will be sold.
 

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At the current price ($17), IPL isn't really at that much of a discount to PPL. Or TRP, or ENB. You could definitely go over there and also more than double your dividend yield. I think people want out of fossil fuel infrastructure. Institutions especially. I fully believe this is only a discussion around price, not about whether it will be sold.
That's right. They are all very undervalued.

I suspect this bid is a way of reducing the value of Heartland to zero. It was a dumb idea, right from the beginning. But, the stock price has more then adjusted to account for this mistake and the Brookfield group probably sees that and figures they can pay $18 or so and simply write off the Heartland. I might be wrong on that part but that is what I would do, if I was them.
 

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Heartland will be successful (propane producers are desperate for value added uplift), but I suspect Brookfield doesn't want to pay for that. They would spin it off anyway once operational, or near operational.
 

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Great timing, NOT. Held IPL for long time and was sitting on a big loss and dividend cuts. Just sold all my IPL on Monday and bought PPL.
 

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I am still holding my 2k shares. It seems like the financial community believes the most likely outcome is BIP takes it with a slightly higher offer at some point in the future. It will be very interesting to read the bid circular when it is filed. Also the response by IPL - will they make an alternate proposal or try to justify status quo? I think like many, I'm not really adverse to selling and it's just a question of price. Lots of long suffering shareholders out there.
 

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The G&M suggests the offer is fairly valued. Whether shareholders bite or not and whether BIP has to sweeten the pot by $1 or so remains to be seen. The probability of an alternative offer is tempered by BIP's current 20% ownership of IPL. BIP wins ether way......

Regardless, timing is not exactly coincidental with IPL's Q4 results a week from now. IPL will be on the hot seat on the conference call.
 

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Well - I'm out. My IPL adventure is over... I did not find Alpha lol. About $1500 in CG overall (Loss in TFSA, gain in unregistered, obviously :ROFLMAO: )

Bought a bit of ENB, and bigger bits of EMA and XIU with the proceeds, and kept about 1/3 as cash that I'm not sure what to do with yet.
 

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Well - I'm out. My IPL adventure is over... I did not find Alpha lol. About $1500 in CG overall (Loss in TFSA, gain in unregistered, obviously :ROFLMAO: )

Bought a bit of ENB, and bigger bits of EMA and XIU with the proceeds, and kept about 1/3 as cash that I'm not sure what to do with yet.
I’m hoping and thinking this goes higher. $19?
 

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Q4 results were solid. IPL has one card in its pocket in that it is fully funded to have Heartland operational in about a year. The strategic review buys time. It's really hard to say where IPL goes. I am hanging in there for now because I really don't have a better idea for the cash. At $17.91, IPL is getting close to the top end of the potential BIPC offer range of $18.25. I find it hard to believe the takeover offer gets to $20. The offer should be in by the end of the month according to G&M.
 

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Pretty sure once Heartland gets on line this is $30/share in a year. I think Brookfield is trying to steal this. Anyway its a good spot for shareholders...we make coin at $18 or go to Disneyland at $20+
 

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Pretty sure once Heartland gets on line this is $30/share in a year. I think Brookfield is trying to steal this. Anyway its a good spot for shareholders...we make coin at $18 or go to Disneyland at $20+
If nothing further goes wrong, the earliest they will be on-line and in commercial production, seems to be about 18 months from now. How long after that it would be profitable? With the overruns, maybe never for IPL. A long time to wait for investors.

If Brookfield takes over and then spins Heartland off to a company with more expertise in plastics, at a fair price, could then be profitable and a good fit as a consumer for Alberta's propane surplus.

Happy I sold my IPL earlier in 2020 - Average selling price was about what is now being offered. I initially bought at a much lower price.
 

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Pretty sure once Heartland gets on line this is $30/share in a year. I think Brookfield is trying to steal this. Anyway its a good spot for shareholders...we make coin at $18 or go to Disneyland at $20+
I think this is a pretty accurate statement.
The board of directors proposed heartland would be a viable project from the start, and although they've had set backs and cost overruns seem to think that the value is there, it's just not reflected in the share price yet. There's only a handful of competitors in this arena in North America, so market demand is there.
Heartland is a huge leap for this company, but once online and running smoothly, my feeling is it will be a cash cow for them.
I'm long on IPL until heartland is up and running or it's sold.
 

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The only objection I have to the Heartland valuation above is that once it is online the valuation of IPL will in reality go from $50 to $5 and then to $30, etc., etc.

It will probably add volatility to an otherwise fairly stable business. That type of thing will usually result in a lower PE, but of course today, getting a lower PE then a pipeline business might be a difficult.
 
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