Will Glencore win over big Teck?

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Will Glencore win over big Teck?
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Teck Resources is having none of Glencore’s R410bn merger talk; can CEO Gary Nagle make it see the light?

The odds are stacked against Glencore’s all-share merger bid for Teck Resources, mainly because the family trust of the Canadian group’s former CEO and chair, Norman Keevil, is against it. The Keevil family have super-voting class A shares, which, despite comprising just 1% of total shares in issue, veto subordinate class B shares.

“Now is not the time to explore a transaction of this nature,” Keevil said in an April 3 statement, supporting Teck’s formal rejection of Glencore’s merger offer. In doing so, Teck is stating a preference for a previously announced demerger of its coal assets into Elk Valley Resources...

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