Teck Resources Limited chairman emeritus and key shareholder Norman Keevil said he would support the sale of Teck’s metals business, but only after it completes a plan to spin off its coal business.
Keevil also noted that Glencore's proposal is the wrong one, at the wrong time, The Canadian Press reported.
Earlier this month, Swiss commodities giant Glencore PLC (LSE:GLEN) made a US$23.2-billion bid to acquire Teck Resources.
“I would support a transaction — whether it be an operating partnership, merger, acquisition, or sale — with the right partner, on the right terms for Teck Metals after separation,” Keevil said in a statement.
“I believe that pursuing a sale or merger transaction now would rob our shareholders of significant post-separation value,” he added.
According to Reuters, Teck Resources has been approached by companies that include Vale SA, Anglo American PLC (LSE:AAL), and Freeport-McMoRan Inc (NYSE:FCX), which have shown interest in its base metals business if the Canadian miner completes its planned spinoff.
But some analysts believe Glencore could be willing to offer more.
“We reiterate our view that Glencore has the ability to increase its offer to C$70 per share, which would essentially transfer the value of Glencore's estimated transaction synergies (US$4.25-5.25 billion) to Teck shareholders,” JP Morgan analysts wrote in a note on Monday.
Contact Sean at sean@proactiveinvestors.com