Teck controlling shareholder Norman Keevil launches fresh appeal for investors to reject Glencore’s merger offer

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In a statement, Teck’s controlling shareholder says Glencore’s proposal is ‘the wrong one, as well as the wrong time’

controlling shareholder, Norman B. Keevil, once again forcefully rejected Glencore’s merger offer, raising the possibility that the Swiss commodities giant will raise its bid as the Canadian company attracts the interest of global mining players.

So far, the US$23-billion offer by Glencore is the only one on the table. It would see Glencore and Teck merge their base metals operations and, in a separate transaction, launch a new company that would hold Glencore’s thermal coal and Teck’s metallurgical coal businesses. “Glencore’s proposal is the wrong one, as well as the wrong time,” Mr. Keevil said. “Ivan Glasenberg is an interesting guy and a smart man, and his timing is certainly good for them, but not for our Teck shareholders. I fully agree with Teck’s board that there is no deal to be done pre-separation with Glencore or any other party.”

Mr. Nagle has said that Glencore would drop its pursuit of Teck if shareholders on April 26 approve the plan to split the company into separate metals and coal operations. But some investment bankers think that Glencore might make a play for Teck Metals, as the metals-focused company would be called, even if shareholders approve the plan to break Teck into two pieces.that Teck has been approached by Vale Ltd., Anglo American PLC and Freeport-McMoRan Inc.

 

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