Glencore Willing to Consider Improvements to Teck Resources Proposal
April 19 2023 - 2:58AM
Dow Jones News
By Ian Walker
Glencore PLC said Wednesday that it would be prepared to
consider improvements to its merger, demerger proposal for Teck
Resources Ltd. if its board were willing to engage with it, but
would also be willing to go directly to its shareholders if
not.
The London-listed Anglo-Swiss commodity mining and trading
company said that any improvements to its proposal are best
considered following engagement with the Teck board as this would
allow the parties to jointly explore ways it could alter its
proposal and address any issues raised by Teck.
Earlier this month, Glencore submitted a proposal to Teck to
merge the two businesses in an all-share deal, with a simultaneous
demerger of their combined coal business. However, this was
rejected by the Teck board saying that it would expose its
shareholders to a large thermal-coal business and an oil-trading
business that would pose a "significant" jurisdictional risk.
Last week, Glencore offered a cash incentive to Teck
shareholders that effectively buys them out of their coal exposure.
This was also rejected by the Teck board.
Under the latest proposal, accepting Teck shareholders would
receive 24% of MetalsCo and $8.2 billion in cash.
Write to Ian Walker at ian.walker@wsj.com
(END) Dow Jones Newswires
April 19, 2023 02:43 ET (06:43 GMT)
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