Glencore In Hot Pursuit Of Teck As It Seeks Copper Assets

Glencore In Hot Pursuit Of Teck As It Seeks Copper Assets

(Reuters) – Copper miner Teck Resources on Wednesday said it has withdrawn its proposed restructuring plan ahead of a shareholder vote on the proposal amid Swiss mining giant Glencore Plc’s attempts to buy the company.

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

Date Development

March Glencore privately offers to merge with Teck

26 Resources 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

11 takeover 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

14 shareholder 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, Anglo American Plc and Freeport-McMoRan 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

17 have 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 of March 7,

the asset management firm held about 2.3 million

class B subordinated voting shares.

April Norway’s sovereign wealth fund, one of the world’s

21 largest investors, says it would support Teck’s

spinoff proposal.

April Canadian Finance Minister Chrystia Freeland says Teck

24 should remain headquartered in Canada amid the merger

talk.

April Teck withdraws its proposed restructuring proposal

26 ahead of a shareholder vote on the plan.

(Reporting by Sourasis Bose in Bengaluru; Editing by Shilpi Majumdar and Sriraj Kalluvila)