Teck takes another hit as Glass Lewis recommends ‘no’ vote

One of Teck’s steelmaking coal operations. (Image by Teck Resources).

Teck Resources Ltd. took another blow in its defense against Glencore Plc, after influential advisory firm Glass Lewis said shareholders should vote against the Canadian miner’s strategy to split out its coal business.

The Glencore offer represents a reasonably compelling alternative that could warrant discussion and there is no urgency for Teck to have to pursue its separation now, Glass Lewis said in a report.

Teck has rejected two takeover proposals this month from Glencore — which wants to combine both their coal businesses and spin them out together — and is instead pressing ahead with an April 26 vote on its own coal-separation strategy.

Norman Keevil, who holds a blocking vote thanks to Teck’s “supervoting” Class A shares, has rejected a deal with Glencore. However, the company requires approval from both classes of shares voting separately, and the Glencore camp is framing the vote as a referendum on its takeover offer as both sides scramble to win over investors.

Competing proxy advisory firm Institutional Shareholder Services has already recommended shareholders vote against Teck’s plan.

Bloomberg also reported on Friday that Teck’s largest shareholder, China Investment Corp., currently favored Glencore’s coal plan and was considering a vote against Teck’s strategy, although it may require a higher price from Glencore before backing its offer.

Glencore had originally proposed an all-share offer for Teck, but has since offered to add a cash component to buy investors out of their exposure to the combined coal company.

(By Thomas Biesheuvel)


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