Teck said today rejected a sweetened proposal from Glencore.
“[The board] determined 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,” wrote Teck in a news release.
Last week Glencore made an unsolicited $22.5 billion bid for Teck.
Glencore made the bid for Teck after it announced plans to separate its coal business. Teck revised the restructuring plan, shortening the timeline to sever the two reorganized businesses.
“Following extensive consultation with shareholders, Teck is making changes to the separation proposal, including reducing the minimum term of the royalty paid by EVR to Teck Metals from approximately 5.5 years to 3 years, providing a potentially shorter path to full separation of Teck Metals and EVR, and putting in place measures to cap annual capital spending by EVR at $1.3 billion, with exceptions for social and regulatory requirements. This strengthens the alignment between EVR and Teck Metals,” wrote Teck today.
