Teck Resources Rejects Unsolicited Acquisition Offer From Glencore
(RTTNews) - Teck Resources Ltd. (TECK, TECK.A.TO) announced Monday that the Board of Directors of Teck has received and unanimously rejected an unsolicited and opportunistic acquisition proposal from Glencore plc (GLCNF.PK, GLNCY.PK, GLEN.L), which would see that company acquire Teck and subsequently separate to create two businesses, which would expose Teck shareholders to thermal coal and oil trading.
The unsolicited proposal contemplates an all-share acquisition of Teck by Glencore offering 7.78 Glencore shares for each Teck Class B subordinate voting share and 12.73 Glencore shares for each Teck Class A common share, which represented a 20% premium for both on the date of the offer.
Consistent with its fiduciary duties and in consultation with its financial and legal advisors, Teck's Board of Directors has conducted a detailed review and assessment of the unsolicited proposal and, on the recommendation of the independent Special Committee of the Board, has determined that the proposal is not in the best interests of Teck or its shareholders.
The Board said it is not contemplating a sale of the company at this time and believe that the planned separation into Teck Metals and Elk Valley Resources (EVR) creates a greater spectrum of opportunities to maximize value for Teck shareholders.
Teck's Board continues to recommend that shareholders approve the previously announced reorganization of Teck's business.
Teck Resources Q4 Profit Plunges; Backs FY23 Production Outlook
Glencore Energy Reaches £280.97 Mln Settlement To Resolve Probe By UK Serious Fraud Office
Dollar Rises Amidst Mixed Jobs Data, Soft Inflation
Bay Street Likely To Extend Gains On Commodities Strength
Major European Markets Largely Subdued In Thin Trading
FTSE 100 Slips Nearly 0.5%; Mining Stocks Move Up
CAC 40 Down Nearly 0.5% In Cautious Trade
