, even richer than the US$23-billion bid the board has twice rejected. Only this time it says it will take its pitch directly to the shareholders.
But this is Canada, where governments do not need to pass legislation or pay compensation to take effective ownership of a company. They need only invoke the magic words “critical minerals value chain,” and that is that: Teck’s nominal shareholders can be summarily deprived of one of the core benefits of ownership, the right to sell your shares to the highest bidder.
Not that it seems to matter to anyone in federal politics, but it’s worth noting exactly how much this cavalier suspension of property rights is likely to cost Teck’s shareholders. As it is, Glencore’s offer represented a 22-per-cent premium on the pre-bid price of Teck’s shares, a cool US$4-billion. A revised offer will likely improve substantially on that.
It also suffers from certain factual inconsistencies. Of the four copper mines in which Teck has a stake, three are not in Canada but in South America. Indeed, the simple dichotomy between “Canadian” Teck and “foreign” Glencore is hard to sustain. Teck’s; its next largest shareholders are American and British. A Japanese company owns 46 per cent of its voting stock.
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