The Swiss-based company that is trying to take over Teck says its offer stands in the wake of Teck’s decision not to hold a vote on a separation proposal. And if the Teck board won’t talk to them, they may go directly to shareholders.
A vote was expected Wednesday on splitting Teck into two companies, a metals division, and a coal division consisting of its Elk Valley operation. But after insisting it was confident the proposal would win two-thirds support, Teck blinked and called off the vote at the last minute, saying it would simplify its plan instead.
Glencore insisted in a statement on its website today that its proposal “provides Teck shareholders with a clean separation for its coal business while also creating significant additional value for Teck’s shareholders in which they would fully and disproportionately share.”
Glencore said it’s willing to talk to Teck’s board and management to raise issues they have raised. Teck has called Glencore’s bid “opportunistic,” a “non-starter,” and said it would be good for Glencore but bad for Teck shareholders.
Glencore said it believes it could further improve its proposal’s “structure, terms and value, which would be in the best interests of all Teck shareholders.”
Glencore said it hopes the Teck board will fully explore its proposal. However, it “remains willing to make an offer directly to Teck shareholders if there continues to be no engagement from the Teck board.”
Glencore initially offered an all-share deal but later sweetened it with $8.2 billion cash.