By Senad Karaahmetovic
Teck Resources (NYSE:TECK) announced today that its Board “unanimously” rejected an unsolicited approach from Glencore (LON:GLEN) (OTC:GLNCY) received earlier this week.
The Board concluded that “the revised proposal is not in the best interests of Teck or its shareholders. The Teck Board and management team remain fully confident that Teck’s planned separation creates a greater spectrum of value-enhancing opportunities for both Teck Metals and Elk Valley Resources,” the company said in a press release.
“Glencore has made two opportunistic and unrealistic proposals that would transfer significant value to Glencore at the expense of Teck shareholders,” said Sheila Murray, Chair of the Board, Teck.
CEO Jonathan Price highlighted “fundamental flaws of Glencore’s revised proposal,” which make talks a “non-starter.”
“It does not address major inherent risks including substantial regulatory hurdles, jurisdictional and ESG concerns, and diluting the base metals business with significant oil trading.”
Chairman Norman Keevil added now “is not the time to explore a transaction of this nature.”
Two days ago, Glencore sweetened its takeover offer for the Canadian miner.
TECK stock is up 13.7% year-to-date.