Long\u002Dterm investor Ben Cleary says Teck\u0027s board should delay its April 26 vote on coal and metals split and engage with Glencore. Read on.
On Tuesday, Glencore said it would pay up to US$8.2 billion in cash to Teck’s shareholders who did not want exposure to its thermal coal business. Its press release announcing the new offer did not say how much cash this equated to on a per share basis, but said Teck shareholders could also opt for equity in the fossil fuels company.
Price contended that Glencore’s plan to split off its fossil fuels and metals businesses was too vague to be taken seriously, and that its thermal coal and oil trading businesses would act as “inherent anchors on valuation.” Price urged Teck shareholders to approve the April 26 plan to split off its metallurgical coal assets from its metals business. Under that plan, the coal company would be obligated to funnel approximately 90 per cent of its cash flows to Teck’s metals business for six years.
The Teck board believes that contaminating and diluting Teck's strong pure-play businesses commonly destroys value for our shareholdersIndeed, Price created a presentation for his call on Monday that noted class A shareholders are “opposed” to Glencore’s offer, as part of the rationale for rejecting the offer.
In 2021, both Bishop and Cleary had been outspoken critics of Teck’s previous chief executive Don Lindsay, saying his strategy to invest in oilsands had been a costly divergence. In addition to calling for Lindsay to be replaced, they urged Teck to divest from the oilsands, phase out its dual class structure and focus on base metals.
Canada Latest News, Canada Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Teck calls Glencore deal a 'non Starter' in appeal to investors - BNN BloombergTeck Resources Ltd. urged investors to support its plan for splitting into two businesses at a vote later this month, reiterating opposition to an alternative proposal from Glencore Plc.
Read more »
Teck calls Glencore deal a 'non starter' in appeal to investorsTeck Resources Ltd. urged investors to support its plan for splitting into two businesses at a vote later this month, reiterating opposition to an alternative…
Read more »
Teck Resources doubles down on plan to split company after Glencore offer - Terrace StandardTeck says its separation will give shareholders more choice and ways to maximize value
Read more »
Teck Resources CEO declares Glencore bid a 'non-starter'Teck Resources Ltd.\u0027s CEO Jonathan Price said Glencore Plc\u0027s proposal would destroy shareholder value. Find out more.
Read more »
Teck Resources CEO calls Glencore takeover bid 'value-destructive' as PR battle heats upTeck Resources CEO Jonathan Price urges shareholders to vote for proposal to separate company into coal and copper businesses. Read more
Read more »
Teck Resources CEO calls Glencore takeover bid 'value-destructive' as PR battle heats upTeck Resources CEO Jonathan Price urges shareholders to vote for proposal to separate company into coal and copper businesses. Read more
Read more »