The answer is still no.
Teck has rejected a revised takeover proposal from Glencore that added $8.2 billion US to what was originally conceived as an all-share transaction.
In a statement posted on their website, the Teck board says it unanimously turned down the revised proposal and will proceed with its original plan to split its business into two separate companies, Teck Metals, and Elk Valley Resources, the latter being the coal division. Teck shareholders will decide April 26 whether to approve that plan.
“Glencore has made two opportunistic and unrealistic proposals that would transfer significant value to Glencore at the expense of Teck shareholders,” Teck board chair Sheila Murray said.
“Teck’s proposed separation creates a significantly greater spectrum of opportunities to maximize value for Teck shareholders.”
Teck CEO Jonathan Price said Glencore would face “significantly greater competition” through Teck’s proposed spinning off of its coal division into a separate company, “which is why it is trying to frustrate Teck’s separation process. The fundamental flaws of Glencore’s revised proposal continue to make it a non-starter.”
At the same time, Teck now indicates it would speed up fully splitting its business into two. The board is proposing to reduce the minimum term of the royalty paid by Elk Valley Resources to Teck Metals from 5.5 years to three years and capping annual spending by Elk Valley Resources at $1.3 billion.
