Glencore Not Giving Up; Profit Dips at Teck Trail Operation

Teck at night

Swiss commodities giant Glencore says it is willing to present its takeover offer directly to shareholders of Teck, if the company's board does not come to the bargaining table to discuss its unsolicited proposal.

The statement came after Teck repeated its assertion that Glencore's offer is a ``non-starter,'' even after the company cancelled a key shareholder vote Wednesday on a plan to split its business, a plan that that Glencore opposes.

Teck called off the vote when it became apparent it did not have the required two-thirds approval from shareholders for the split of the company into Teck Metals and Elk Valley Resources.

Instead, the company says it will pursue ``a simpler and more direct separation.''

The company maintains separating its metals and steelmaking coal divisions would be a better deal for shareholders than the Glencore plan.

Teck's board has rejected Glencore's unsolicited takeover offer that would see shareholders receive a stake in a combined metals company as well as a choice of cash or shares in a company that would hold their merged coal assets.

In the latest bid, Glencore put $8.2 billion on the table.

The proposal represented a 20 per cent premium when it was first made, but Glencore says it believes that it could improve its structure, terms and value through negotiations.

Meanwhile the Trail Operation turned a first-quarter profit of $12-million, down form $14-million in the first three months of 2022.

The company reported first quarter revenue came in at $483-million, compared with $584-million last year.

Teck officials say unplanned repairs to the roaster played a role in an 11.5% reduction in the production of refined zinc, which came in at 61,600 tonnes.

The company’s financial report also stated that repairs to the Kivcet Boiler was a reason refined lead production was down about 16.25% at 16,000 tonnes.  

Operating costs in Trail were also reported to have increased eight-percent.