Teck approached by other companies while fending off Glencore offers -Globe and Mail

April 17, 2023 06:20 AM AEST | By Reuters
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April 16 (Reuters) - Teck Resources Ltd has been approached by a unit of Vale SA, Anglo American Plc and Freeport-McMoRan Inc to explore deals if a planned split of the company happens, The Globe and Mail reported on Sunday, citing two sources familiar with the discussions.

A vote on Teck's plan to fully separate the copper and zinc business Teck Metals from the steelmaking coal Elk Valley business is scheduled on April 26.

These approaches from international miners come as the Vancouver-based miner is fending off unsolicited bids from Glencore Plc that would involve combining and spinning off the thermal and steelmaking coal businesses of both companies.

The Swiss mining company has offered Teck shareholders 24% of the combined metals group and up to $8.2 billion in cash for those who may not want exposure to thermal coal.

Two proxy shareholder advisory firms have recommended that Teck Resources shareholders vote against the planned split.

Institutional Shareholder Services (ISS) advised shareholders to reject Teck's restructuring plan. On Saturday, Bloomberg News reported that Glass Lewis also asked Teck Resources shareholders to vote against Teck's plan to spin off its coal business.

Teck has received expressions of interest from at least half a dozen major mining companies, who are interested in various transactions post-split, the Globe and Mail added.

Teck, Freeport, Vale and Anglo American declined to comment to Reuters' request for comment. (Reporting by Lavanya Ahire in Bengaluru; Additional reporting credit by Mrinmay Dey in Bengaluru; Editing by Bill Berkrot and Sandra Maler)


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