(Vancouver) The future of Canada’s largest diversified mining company remains uncertain after a turbulent week that saw Teck Resources overturn a vote on its restructuring plan at the last minute, while mining giant Glencore continues efforts to buy the company.
Vancouver-based Teck on Wednesday overturned a shareholder vote on its plan to split into two entities: one made up of its metallurgical assets and the other made up of its steelmaking coal assets. She further reiterated that she opposes any deal with Glencore, adding that she remains committed to her own split plan.
Glencore, meanwhile, said on Thursday it still wanted to discuss a deal with Teck’s board, but was ready to submit its takeover bid directly to the company’s shareholders, if needed.
The failure of Teck’s restructuring plan has left the door open for Glencore’s proposal, which has also sparked heightened political interest, including calls from federal conservatives for the government to block any attempt by the Swiss company to acquire Teak.
The timing of any potential Teck restructuring proposal remains uncertain, as does Glencore’s next move.
Despite all the unknowns, it seems clear that shareholders are benefiting from competing projects, as Teck’s stock has traded near all-time highs over the past two weeks.