Teck Resources Pushes Back Again on Glencore's Attempts to Court Shareholders in Takeover Bid
April 19 2023 - 11:39AM
Dow Jones News
By Adriano Marchese
Teck Resources Ltd. offered its shareholders to vote to spin off
its steelmaking coal business as Anglo-Swiss commodity mining and
trading company Glencore PLC tries to woo Teck shareholders to
accept a merger proposal.
The Canadian natural resources company responded to a Glencore
statement on early Wednesday, suggesting that the takeover premium
that Glencore is proposing continues to undervalue Teck's
business.
Teck said the proposal instead is based on a highly volatile
share-based consideration and doesn't reflect the value of the base
metals portfolio that would come its metals business.
In an open letter early Wednesday, Glencore said it is prepared
to engage with Teck's board to consider improvements to its
takeover proposal, but that it is also prepared to go directly to
Teck's shareholders.
Glencore's letter was aimed at Teck Class B shareholders, after
what it said was the Teck board's consistent refusal to engage with
its takeover proposal.
Later on Wednesday, Teck responded that nothing had changed with
Glencore's proposal.
"[The proposal offers] same low value, same flawed structure,
same material execution risks," Teck said in its statement.
Last week, Teck made its spinoff plans more enticing to
shareholders, promising to make changes to its transaction terms to
allow for an earlier full separation of Teck Metals Corp. and Elk
Valley Resources Ltd.
Glencore has been vying to win shareholder favor when it earlier
last week said it would add a cash component to its roughly $23
billion unsolicited merger proposal for Teck that offered
shareholders 24% of MetalsCo, the standalone company that would be
created in the merger, and $8.2 billion in cash.
Glencore faces an uphill battle to win over Teck shareholders'
favor. Teck's controlling shareholder and chairman emeritus, Norman
Keevil, has repeatedly backed plans to split Teck and said he
supports the board's rejection of Glencore's takeover proposal.
Write to Adriano Marchese at adriano.marchese@wsj.com
(END) Dow Jones Newswires
April 19, 2023 11:24 ET (15:24 GMT)
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