Teck Resources on April 10 reinforced its rejection of an unsolicited $22.5 billion bid from Glencore, and told shareholders its restructuring plan was the only viable option, Reuters reported.
Glencore made the bid publicly on April 3, which includes a plan to spin off Teck's thermal and coking coal businesses.
Teck Chief Executive Jonathan Price told shareholders that more value could be unlocked through a proposed restructuring in which the Vancouver-based miner would spin off its steelmaking coal unit to focus on copper and other industrial metals.
A shareholder vote on Teck's plan is scheduled for April 26. If it passes, the separation process will then take 7-8 weeks to complete.
"Scale and diversification do not create value if the quality of the business is contaminated," Price said. Teck also see serious structural flaws in the proposal that Glencore has put forward, which they believe would destroy value for Teck shareholders.
Last week, Teck pointed structural flaws would include having an oil marketing business within the base metals vehicle and exposing its shareholders to a big thermal coal business.
(Writing by Rebecca Liu Editing by Harry Huo)
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