Glencore also rejects Teck with an improved offer

Canadian commodities company Teck also rejected Glencore’s second takeover offer. The takeover is not in the best interest of the company and its shareholders.

Teck’s board of directors unanimously recommended rejecting the offer, according to a statement Thursday afternoon. They therefore want to stick to the plan to decide at the general meeting on April 26 to split Teck into Metals and Elk Valley Resources.

“Glencore has made two opportunistic and unrealistic proposals that would add significant value to Glencore at the expense of Teck shareholders,” Sheila Murray, chairman of the board of directors, said in the statement. The separation proposed by the BoD creates a greater range of opportunities to maximize shareholder value, it said. Teck also raised several legal, competition and environmental issues.

According to the second offer earlier this week, Teck investors should receive a 24 percent stake in the future “MetalsCo” and $8.2 billion in cash for their shares. In addition, after acquiring Teck, Glencore wanted to separate the combined coal business from the future metals-oriented company. (oee/sda/awp)