Glencore PLC GLEN,
The London-listed Anglo-Swiss commodity mining and trading company said that any improvements to its proposal are best considered following engagement with the Teck board as this would allow the parties to jointly explore ways it could alter its proposal and address any issues raised by Teck.
Earlier this month, Glencore submitted a proposal to Teck to merge the two businesses in an all-share deal, with a simultaneous demerger of their combined coal business. However, this was rejected by the Teck board saying that it would expose its shareholders to a large thermal-coal business and an oil-trading business that would pose a “significant” jurisdictional risk.
Last week, Glencore offered a cash incentive to Teck shareholders that effectively buys them out of their coal exposure. This was also rejected by the Teck board.
Under the latest proposal, accepting Teck shareholders would receive 24% of MetalsCo and $8.2 billion in cash.
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