Teck Receives Interest in Coal Business as Glencore Circles

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Teck's plans to exit coal and create a standalone base-metals company suffered a blow in April

Teck’s plans to exit coal and create a standalone base-metals company suffered a blow in April when it failed to win enough shareholder support for a complicated spinoff proposal. It maintains that separating from its coal assets will create the most value for shareholders, and is now under pressure to develop a plan more appealing than Glencore’s $23 billion offer for the entire company, especially with the prospect of a sweetened bid on the way.

“Teck’s board will appropriately consider and evaluate any proposal that can unlock the tremendous potential of Teck’s premium businesses and portfolio of high-quality assets as part of our ongoing work to continue building a great mining business and realize value for shareholders,” said Teck chairperson Sheila Murray.Bloomberg reported last week that Glencore was working on a higher offer for Teck as it seeks to draw the board and management to the negotiating table.

 

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