off-the-wire

UPDATE 1-Teck Resources separation plan backed by shareholder Sumitomo Metal

Kitco Media
By Reuters
Published:
Updated:
Reuters
(Updates with context) LONDON, April 20 (Reuters) - Sumitomo Metal Mining on Thursday said it supports Teck Resources' plan to create two separate companies, as the Vancouver-based miner fends off an unsolicited takeover bid from mining giant Glencore .


Sumitomo is a shareholder in Teck, which operates under a dual-class structure and needs approval from two-thirds of shareholders on both sides for the restructuring. Canada's Keevil family owns the majority of 'A' class of shares, which have more voting power than the numerous 'B' class shares held by institutions.


The statement of support from the Japanese company comes ahead of an April 26 shareholder vote on Teck's plan to spin off its metallurgical coal business and focus on copper and zinc. In March Glencore made a $22.5 billion takeover offer which was rejected by the board. Norman Keevil, chairman emeritus of Teck, agreed with the
rejection. In an open letter to Teck's shareholders on Wednesday,
Glencore said it is willing to improve its bid and it would consider taking it to them directly if the board failed to engage.


(Reporting by Clara Denina and Bharat Govind Gautam; editing by Dhanya Ann Thoppil and Jason Neely)

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