LONDON (Reuters) – Glencore has told Teck Resources’ shareholders it is willing to improve its $22.5 billion takeover offer, raising the pressure on the Canadian miner to ditch a restructuring plan and sit down at the negotiating table.
In an open letter on Wednesday, Glencore said it would consider taking the offer to Teck’s shareholders directly if the board failed to engage.
The Swiss miner and trading company made its all-share offer as Teck’s own plan to spin off its metallurgical coal business and focus on copper and zinc nears an April 26 vote.
Glencore Chief Executive Gary Nagle flew to Canada to meet shareholders last Thursday after revising its unsolicited bid to include up to $8.2 billion in cash.
Teck’s board rejected that as too low, adding that it would unnecessarily expose shareholders to a large thermal coal business and an unwanted oil trading unit.
Glencore’s proposal would combine and spin off its thermal coal unit and Teck’s steelmaking coal business.
(Reporting by Clara Denina and Yadarisa Shabong; Editing by David Goodman)
