(Reuters) -Teck Resources Ltd on Monday rejected an unsolicited $22.5 billion bid from Swiss commodity firm Glencore Plc, sending the U.S.-listed shares of the Canadian copper miner up about 10% in premarket trading.
Glencore’s all-share offer was a 20% premium to the closing stock price of Teck on March 26 when the bid was made and proposed a simultaneous spin off of its combined thermal and steelmaking coal businesses.
The $19-billion company, however, said a potential split would expose its shareholders to a large thermal coal business, an oil trading business and significant jurisdictional risk, all of which would negatively impact its value.
Teck said more value can be achieved with the proposed restructuring announced earlier this year than the sale of the company.
“The board is not contemplating a sale of the company at this time,” Teck Chair Sheila Murray said.
The company had in February said it would spin off its steelmaking coal unit to focus on industrial metals such as copper.
After the separation, Teck will re-brand itself as Teck Metals Corp, while the new divested unit will be listed in Toronto as Elk Valley Resources Ltd.
(Reporting by Ankit Kumar and Mrinalika Roy; Editing by Dhanya Ann Thoppil and Arun Koyyur)