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April 15 (Reuters) - Advisory firm Glass Lewis said Teck
Resources Ltd shareholders should vote against Teck's
plan to spin off its coal business, Bloomberg News reported on
Saturday.
Glass Lewis and Teck did not immediately respond to requests
for comment.
The move follows another influential proxy adviser,
Institutional Shareholder Services (ISS), which also advised
shareholders to reject Teck's restructuring plan this week.
Teck is in the midst of a takeover battle with Swiss miner
Glencore Plc , which has offered Teck's shareholders 24%
of the combined metals group and up to $8.2 billion in cash for
those who may not want exposure to thermal coal.
The takeover would involve combining and spinning off the
thermal and steelmaking coal businesses of both companies.
Teck has rejected the offer and made changes to its own
proposed restructuring plan to allow for a potentially shorter
path to fully separate the copper and zinc business Teck Metals
from the steelmaking coal Elk Valley business.
The revised plan would include measures to cap annual
capital spending by the coal business at $1.3 billion and reduce
the minimum term of the royalty paid by to Teck Metals to three
years from 5.5 years.
A vote on Teck's own plan is scheduled for April 26.
Glencore has declined to comment, but has previously said
there are flaws in Teck's own spinoff plan because it would
leave the metals unit still exposed to coal revenue.
(Reporting by Gokul Pisharody in Bengaluru
Editing by Mark Potter)
