Teck Resources Ltd on Monday rejected an unsolicited $22.5 billion bid from Swiss mining and trading company Glencore Plc , sending the U.S.-listed shares of the Canadian copper miner up about 10% in premarket trading.
Glencore's all-share offer comes at a 20% premium to the closing stock price of Teck on March 26, when the bid was made, proposing a simultaneous spin-off of their thermal and steelmaking coal businesses.
Teck said more value can be created with the proposed restructuring announced earlier this year than the sale of the company. After the separation, the company will re-brand itself as Teck Metals Corp, while the new divested unit will be listed in Toronto as Elk Valley Resources Ltd. "Given the family control of Teck's A shares, we view the likelihood of a successful transaction with Glencore as extremely low, even in the event of an improved offer," they added.The Keevil family's control of Teck through their dominant ownership of 'A' class of shares, which have more voting power than the numerous 'B' class shares held by institutions, could make any further merger discussion hard.
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