Swiss company Glencore plc is modifying its hostile takeover offer for Teck Resources Ltd. to include a cash component in its proposal. This April 14, 2011 file picture shows the Glencore headquarters in Baar, Switzerland. THE CANADIAN PRESS-AP Photo/Keystone/Urs Flueeler
VANCOUVER – Swiss company Glencore is modifying its hostile takeover offer for Teck Resources Ltd. to include an US$8.2-billion cash component to its proposal.
Under the revised offer, Teck shareholders would receive 24 per cent of the combined metals company and the cash.
The company’s initial proposal had been an all-stock offer that would have seen Glencore acquire Teck and then split up the metals side of both companies along with parts of Glencore’s marketing business into one company, and the combined coal and some other related assets into another company.
Glencore says the revised offer would effectively buy Teck shareholders out of their coal exposure.
It says it acknowledges that certain Teck investors may prefer a full coal exit and others may not desire thermal coal exposure.
Teck rejected Glencore’s initial unsolicited takeover offer in favour of its own plan, announced in February, that would see it split up its metal and coal businesses into two companies.
Companies in this story: (TSX:TECK.B)
