Glencore-Teck Resources Deal: Glencore Ready To Raise Bid, Pressure Teck For Takeover

Glencore Plc is willing to improve its $22.5 billion takeover offer of told Teck Resources Ltd TECK, said Gary Nagle, Glencore CEO, in a letter to Teck shareholders.
The European company is putting pressure on the Canadian miner, saying the Proposed Merger/Demerger is superior to the Proposed Teck Separation as it provides the most compelling value proposition to Teck shareholders.
Also Read: Glencore's Revised Proposal For Teck Resources: Unlike To Engage Key Shareholders, Analyst Says.
In an open letter, Glencore said it would consider taking the offer to Teck's shareholders directly if the board failed to engage.
Glencore Chief Executive Gary Nagle said that the revised proposal would also include a cash component to buy shareholders out of their coal exposure such that Teck shareholders would receive up to $8.2 billion in cash or 24% of CoalCo.
Glencore's proposal will stand if Teck delays its shareholders' meeting or Teck shareholders vote down the Proposed Teck Separation on 26 April 2023.
"Glencore has never stated that its proposal is 'best and final' and that it is not willing to make changes and improvement," Nagle said in the letter.
"With engagement, we could improve our proposal's terms and value, which would be in the best interests of all Teck shareholders."
Glencore's plan would combine and spin off its thermal coal unit and Teck's steelmaking coal business.
Teck's management estimated that after its proposed restructuring, shares in the metals business could trade at C$100 ($74.67) or higher.
Citing JP Morgan analysts, Reuters reported that Glencore could pay as much as $27.2 billion.
Price Action: TECK shares are up 0.10% at $48.15 during the premarket session on the last check Wednesday.

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