Glencore Has Three Weeks to Keep $23 Billion Teck Bid Alive – Dinesh Nair and Thomas Biesheuvel (Bloomberg News – April 4, 2023)

(Bloomberg) — Teck Resources Ltd.’s public rejection of a $23 billion offer from Glencore Plc has fired the starting gun on three weeks of drama for the Swiss commodities giant to keep its proposal alive.

Glencore isn’t actually trying to buy any Teck shares yet. There would be little point, after the company’s controlling investor — Canadian mining patriarch Norman Keevil — made clear he’s not interested in selling. Instead, the future of Glencore’s proposal for now depends on convincing Teck’s shareholders to reject the company’s own plan to split into two, at a vote scheduled for April 26.

Ironically, the same dual-class structure that gives Keevil his power through supervoting shares may also provide an opportunity for Glencore. Teck’s plan to separate its base metals and coal businesses will require two-thirds approval from both sets of investors — the powerful “A” shares dominated by the Keevil family, as well to the regular “B” shares.

Glencore now has three weeks to convince enough Teck investors to oppose the separation plan in the hopes of bringing Keevil and the board back to the negotiating table. Of course, the Keevil family’s holding will leave it in control regardless of the outcome of the vote.

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