Glencore has upped the pressure on Teck management by offering to sweeten its deal further and stating it will make a hostile bid if the management of the Canadian miner won’t engage in discussions.
Switzerland-based Glencore’s approach involves splitting both companies' coal interests from their metals businesses and into a new venture, CoalCo.
Teck has already proposed something similar, with its shareholders to vote on its proposal on 26 April.
In an open letter to Teck’s B or restricted voting shareholders, Glencore said it had been consistently refused any engagement by the Teck board while reiterating it had added a cash component worth US$8.2bn in total for those who wanted to opt of coal entirely.
Glencore wrote its merger proposal was “demonstrably superior” to the Teck plans across all key parameters, adding it was willing to make an offer directly to shareholders if the Teckcoal/metal separation does not proceed.
The FTSE 100 group added it is also prepared to further improve its offer if the Teck board does engage and has never said its proposal is “best and final”.
“In fact, we believe that with engagement, we could improve our proposal's terms and value.”
Teck's board has rejected Glencore’s approach as too low and would mean exposure to a large thermal coal business and oil trading unit.
Shares in Glencore fell 1% to 493p.