Canadian Brookfield Business Partners LP has made an offer to purchase the publicly traded units of TeeKay Offshore (NYSE:TOO) that it doesn’t already own. The offer was for $1.05/unit–shares are trading at that level now–no premium in the offer.
Recall last month Brookfield bought the last of the general partners interest in TeeKay thereby controlling the company so this is just a continuation for full ownership.
TeeKay has 3 preferred unit issues outstanding and they popped last month on the Brookfield announcement of the general partners acquisition–then they settle way back. Likely we will see a pop today. Those units are here.
Instead of a pop the TOO units are being sold off hard on delisting concerns–as one said, what a punch in the gut.