Hedge fund opposes Brookfield offer for Teekay Offshore stake

U.S. hedge fund JDP Capital Management said it and other minority unit-holders of Teekay Offshore Partners LP (NYSE: TOO) oppose Brookfield Asset Management's proposed acquisition of the midstream services provider. Brookfield's private equity group, which owns 73 percent of the company, this month offered to buy the remaining interest for US$1.05 per unit. In an open letter, JDP said it believes Teekay Offshore is worth at least US$4 per unit today based on a cash flow analysis and peer comparisons. Teekay Offshore is an affiliate of Teekay Corp (NYSE: TK), a Vancouver-based marine energy transportation, storage and production business.

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