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Glencore in hot pursuit of Teck with eyes on copper assets

Published 04/19/2023, 08:33 AM
Updated 04/19/2023, 11:07 AM
© Reuters. FILE PHOTO: The logo of commodities trader Glencore is pictured in front of the company's headquarters in Baar, Switzerland, September 30, 2015. REUTERS/Arnd Wiegmann
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(Reuters) - Swiss miner Glencore (OTC:GLNCY) Plc said on Wednesday it was willing to raise its bid for Canada's Teck Resources (NYSE:TECK) Ltd, its latest attempt to bring the Canadian miner on the negotiation table ahead of restructuring.

Teck has repeatedly rejected Glencore's offer and instead urged shareholders to vote for the company's own plan to split its coal and copper businesses.

Here is the snapshot of key events in the Teck-Glencore saga so far.

Date Development

March Glencore privately offers to merge with Teck Resources

26 in a $22.5 billion all-share deal.

April Teck rejects Glencore's offer citing reluctance to

3 expose its shareholders to thermal coal, oil, LNG and

related sectors.

April Teck Chief Executive Jonathan Price reinforces the

10 rejection of Glencore's unsolicited bid and tells

shareholders that Teck's restructuring plan is the

only viable option.

Reuters reports that Glencore Chief Executive Gary

Nagle plans to personally meet some Canadian

shareholders of Teck to get their support for the

merger.

April Glencore modifies its $22.5 billion all-share takeover

11 bid to include up to $8.2 billion in cash, which

Teck's board dubs "largely unchanged".

April Several Teck shareholders ask Glencore to sweeten its

12 takeover bid.

April Teck rejects the improved bid and tweaks its own

13 restructuring plan to allow for an earlier full

separation of its metals and coal divisions.

Influential proxy advisor Institutional Shareholder

Services (ISS) advises shareholders to reject Teck's

restructuring plan on uncertainties and structural

issues.

April Bloomberg News reports that Teck's biggest shareholder

14 China Investment Corp (CIC) favors Glencore's revised

offer as it allows investors to exit their coal

exposure for cash.

April Bloomberg News reports that Advisory firm Glass Lewis

15 has recommended to its shareholders to vote against

Teck's plan to spin off its coal segment.

April Vale SA (NYSE:VALE), Anglo American (LON:AAL) Plc and Freeport-McMoRan (NYSE:FCX) Inc,

16 among others, approach Teck to explore deals for its

base metals business if the spinoff takes places,

sources tell Reuters.

Teck's Chairman Emeritus Norman Keevil says he would

support deals for the base metals business of Teck

post spinoff.

April A source tells Reuters that Glencore's executives have

17 met or spoken with some 120 Teck shareholders to win

support for their takeover bid.

Teck denies media reports that stated its largest

shareholder CIC favored the Glencore deal.

April Teck CEO Price again advises shareholders to back the

18 spinoff in a hastily arranged conference call after

skipping the World Copper Conference in Chile.

April In an open letter, Glencore says it is willing to

19 improve the $22.5 billion bid and will consider taking

the offer directly to shareholders if Teck's board

refuses to discuss the deal.

Teck says Glencore is seeking to frustrate the vote

and pre-empt a competitive future landscape. Teck

reiterates its recommendation that shareholders vote

for a planned spin-off.

Teck shareholder Waratah Capital Advisors

says it has voted against the restructuring plan. As

© Reuters. FILE PHOTO: The logo of commodities trader Glencore is pictured in front of the company's headquarters in Baar, Switzerland, September 30, 2015. REUTERS/Arnd Wiegmann

of March 7, the asset management firm held about 2.3

million class B subordinated voting shares.

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