Teck Resources Ltd. says it has rejected an unsolicited takeover offer from Glencore.
Teck board chair Sheila Murray says it is not contemplating a sale of the company at this time.
Teck announced a plan earlier this year to split the company in two, separating its steelmaking coal business from its base metals operations.
Murray says the board believes the company’s plan creates a greater spectrum of opportunities to maximize value for Teck shareholders.
Teck says the offer from Glencore was for 7.78 Glencore shares for each Teck class B subordinate voting share and 12.73 Glencore shares for each Teck class A share, a 20 per cent premium for both on the date of the offer.
Teck CEO Jonathan Price says the proposal would expose Teck shareholders to a large thermal coal business, an oil trading business and significant jurisdictional risk, all of which he says would hurt the value potential of Teck’s business.