# Glencore courts 120 Teck investors for bid backing as spinoff vote looms -source Author: Pal Sinha, Barnali Author URL: https://financedigest.com/author/pal-sinha-barnali Published: 2023-04-18 Category: NEWS Category URL: https://financedigest.com/category/news Meta Title: Glencore courts 120 Teck investors for bid backing Meta Description: Engage with Glencore's bid for Teck Resources as the company seeks support for its takeover rather than internal overhaul, amid a looming spinoff vote. URL: https://financedigest.com/glencore-courts-120-teck-investors-for-bid-backing-as-spinoff-vote-looms-sourcehtml ![undefined](https://prod.superblogcdn.com/site_cuid_cm5qst7v3003gwirgwqtxn8i8/images/2023-04-18t000703z3lynxmpej3g0jortroptp4eck-resources-m-a-glencore-1736814133605-compressed.jpg) # Glencore courts 120 Teck investors for bid backing as spinoff vote looms -source LONDON (Reuters) -Glencore executives have met or spoken with some 120 Teck Resources shareholders during a short visit to Toronto to try to win support for the company’s takeover bid rather than an internal overhaul, a source familiar with the situation said. Glencore made its $22.5 billion all-share offer as Teck’s own plan to spin off its metallurgical coal business and focus on copper and zinc nears an April 26 vote. Glencore Chief Executive Gary Nagle flew to Canada to meet shareholders last Thursday, after earlier in the week revising the unsolicited bid to include up to $8.2 billion in cash, which Teck’s board rejected as “largely unchanged”. The [Swiss mining company](https://www.financedigest.com/swiss-insurance-company-helvetia-uses-squirro-to-deliver-better-search-results-to-its-five-million-customers.html "Swiss insurance company Helvetia uses Squirro to deliver better search results to its five million customers") would instead combine and spin off its thermal coal unit and Teck’s steelmaking coal business. ## Glencore declined to comment. We continue to engage extensively with our shareholders and believe that they recognize that Teck will be in a far better position to [create value](https://www.financedigest.com/creating-sustainable-value-through-responsible-investment.html "Creating sustainable value through responsible investment") with a larger pool of interested parties after separation, and will support Teck’s proposal,” a spokesperson for Teck said in an email. Teck also said that its biggest public [shareholder China Investment](https://www.financedigest.com/joby-aviation-to-get-investment-from-tesla-shareholder-baillie-gifford.html "Joby Aviation to get investment from Tesla shareholder Baillie Gifford") Corporation (CIC) has not met with Glencore and that media reports that CIC was in favour of Glencore’s proposed merger are false. A wave of buyout offers for mines and mining companies is widely expected in coming months as demand increases for copper and other [green energy](https://www.financedigest.com/britains-tax-take-risks-blowing-green-energy-off-target.html "Britain’s tax take risks blowing green energy off target") transition minerals. Shareholders have told Reuters that Glencore’s offer is too low for them to reject Teck’s restructuring plan or ask for a delay to the vote, while analysts [expected the Swiss company](https://www.financedigest.com/around-40-of-german-companies-expect-output-decline-in-2023-iw-institute.html "Around 40% of German companies expect output decline in 2023 – IW institute") to dig deeper into its pocket. If they were to increase the bid, then there is going to be a lot of pressure on Teck to delay their vote and to engage,” said Ben Cleary, portfolio [manager at Tribeca Global Natural Resources](https://www.financedigest.com/the-importance-of-strategic-human-resource-management.html "The Importance of Strategic Human Resource Management") Fund. [Glencore’s initial bid represented a 20% premium to Teck’s](https://www.financedigest.com/norway-sovereign-fund-backs-teck-resources-in-battle-with-glencore.html "Norway sovereign fund backs Teck Resources in battle with Glencore") closing stock price on March 26, when it was made privately. JP Morgan analysts said in a note on Monday that Glencore could [pay as much as $27.2 billion](https://www.financedigest.com/cvs-walmart-walgreens-agree-to-pay-13-8-billion-to-settle-u-s-opioid-claims-sources.html "CVS, Walmart, Walgreens agree to pay .8 billion to settle U.S. opioid claims – sources"). Teck has said it would explore a corporate transaction or partnership post separation, while sources said on Monday that the company has had approaches from more than six mining companies [interested in its prized metals business](https://www.financedigest.com/spring-statement-should-businesses-be-preparing-for-interest-rate-rises.html "Spring Statement: Should businesses be preparing for interest rate rises?"). [(Reporting by Clara Denina; Additional reporting by Mrinalika Roy](https://www.financedigest.com/lumen-releases-report-from-pwc-on-the-roi-of-attention-technology.html "Lumen Releases Report from PwC on the ROI of Attention Technology") and Divya Rajagopal; Editing by Alexander Smith and Grant McCool) --- This blog is powered by Superblog. Visit https://superblog.ai to know more. ---