- Teck Resources (TECK.A) is appealing to its shareholders, after Swiss multinational Glencore once again upped its bid for an attempted merger
- Teck called the Glencore attempt an “opportunistic proposal” carrying the “same low value, same flawed structure, same material execution risks,” in a letter to shareholders
- Executives called the latest attempt by Glencore at a proposed merger, an “attempt to frustrate value creation for Teck shareholders”
- Glencore said it will improve on its US$22.5 billion takeover offer, while Teck’s board of directors has continually embraced restructuring throughout the process
- Teck Resources (TSX:TECK.A) is up 0.62 percent, trading at $64.84 at 10:22 am ET
Teck Resources (TECK.A) is appealing to its shareholders, after Swiss multinational Glencore once again upped its bid for an attempted merger.
The Vancouver-based mining firm called the latest Glencore attempt an “opportunistic proposal” that carries the “same low value, same flawed structure, same material execution risks,” in a letter to its shareholders Wednesday.
Executives called the latest attempt by Glencore at a proposed merger, an “attempt to frustrate value creation for Teck shareholders.”
The letter urgers shareholders to vote against entertaining the Glencore proposal, during an upcoming meeting.
“Now is not the right time to pursue a transaction with Glencore. We fully believe that Glencore’s proposals are nothing more than an opportunistic attempt to interfere with the vote at Teck’s annual and special meeting of shareholders on April 26th to their benefit and to the detriment of our shareholders,” the company said in the letter to shareholders.
Glencore said Wednesday it will further improve on its US$22.5 billion takeover offer, while Teck’s board of directors has continually embraced restructuring throughout the process.
“Teck has previously engaged extensively with Glencore – for six months on essentially the same proposal – and repeatedly determined it is not in the best interest of Teck shareholders,” the company said in a statement Wednesday.
“The choice for shareholders is clear: vote FOR Teck’s separation plan to create the world’s pre-eminent, pure-play base metals company with a greater array of value creating opportunities.”
Teck Resources Chairman Emeritus and Special Advisor Dr. Norman Keevil said the Glencore proposal only differs marginally from a 2020 takeover bid, and reiterating to shareholders that the timing is not right for such a move.
“I would support a transaction – whether it be an operating partnership, merger, acquisition, or sale – with the right partner, on the right terms for Teck Metals after separation. Based on my decades of experience building a successful mining company, I believe that pursuing a sale or merger transaction now would rob our shareholders of significant post-separation value,” Keevil said in the letter.
“I fully agree with Teck’s Board that there is no deal to be done pre-separation with Glencore or any other party.”
Teck Resources (TSX:TECK.A) is up 0.62 percent, trading at $64.84 at 10:22 am ET.