Glencore mulls tender offer for Teck but chances of success appear low – by Eric Reguly and Niall McGee (Globe and Mail – April 20, 2023)

Glencore PLC is dangling the prospect of a higher takeover offer for Teck Resources Ltd., and possibly even a tender offer, as it urges the company’s class B shareholders to reject the Canadian miner’s proposal to split itself in two when they vote next week.

Glencore of Switzerland earlier this month offered to buy Vancouver-based Teck at a 22-per-cent premium to its market value in a stock-and-cash deal worth roughly US$22.5-billion. The board of Vancouver-based Teck, its management and its controlling class A shareholders have repeatedly rejected Glencore’s advances, saying a takeover would be ruinous to shareholder value.

Teck instead is pushing its shareholders to back its plan to separate into Elk Valley Resources, holding its metallurgical coal assets, and Teck Metals, containing its critical minerals mines. A meeting will be held next Wednesday, and two-thirds of votes cast must be in favour for the split to succeed.

If the vote fails, Glencore says it will be waiting in the wings, and on Wednesday, it indicated it can be coaxed into paying more for Teck. “Glencore is willing to consider making improvements,” Glencore chief executive officer Gary Nagle said in a statement.

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