(Reuters) – Canada’s Teck Resources on Monday doubled down on its push to reject an unsolicited $22.5 billion bid from Glencore Plc citing “fundamental flaws” in the offer and urged shareholders to instead vote for a restructuring.
The Swiss miner’s buyout bid, which was made public last week, includes a plan to simultaneously spin off the thermal and steelmaking coal businesses and rebrand the remaining company as GlenTeck.
Teck said its board has rejected the offer as Glencore did not present a coherent plan for its proposed coal company, adding that the deal would expose its shareholders to thermal coal, oil, LNG and related sectors.
“Fundamental flaws of Glencore’s proposal make it a non-starter and Glencore’s track record makes it an unsuitable acquirer,” Teck said ahead of an investor call on Monday.
The company once again said more value could be unlocked through a proposed restructuring in which the Vancouver-based miner would spin off its steelmaking coal unit to focus on copper and other industrial metals.
A vote on this proposal is scheduled for April 26.
The company said such a separation is the best option for shareholders as it maximizes value, minimizes execution risk and has no competition or regulatory hurdles, with completion expected by the end of May.
(Reporting by Mrinalika Roy in Bengaluru; Editing by Arun Koyyur)
