(Adds details on Glencore's proposal, company background)
By Divya Rajagopal
TORONTO, May 9 (Reuters) - Pierre Lassonde, a Canadian
mining industry veteran, has made an offer to invest in Teck
Resources Ltd's coal business, in a bid to thwart
Glencore Plc's hostile attempt to merge with Teck.
Vancouver-based Teck has rebuffed Swiss mining company
Glencore's $22.5 billon offer to combine the two companies and
is instead pursing plans to separate its copper and coal
business.
Teck last month pulled its initial business separation plan
at the last minute after failing to secure enough shareholder
support. Lassonde said that a separation of the coal and copper
business can be done in different forms and does not necessarily
have to be a cash purchase.
"We have put forward one model for this, they (Teck) said
they like what they see but we don't know what others have
offered," Lassonde told Reuters.
Teck declined to comment.
Glencore has offered a cash component for Teck's coal
business worth C$8 billion ($5.98 billion). When asked how the
deal would be financed, Lassonde said there is no shortage of
billionaires in Canada who would come together to ensure that
Teck remains a Canadian enterprise.
"There is no shortage of Canadian money to get the deal
done," he said.
Canadian government officials have said that Glencore's
proposed offer would receive tough scrutiny, and it has faced
opposition from some business lobby groups and opposition
Conservative leaders. Canada Finance Minister Chrystia Freeland
of the Liberal Party in April said that companies such as Teck
should remain in Canada.
Glencore said on April 27 that its takeover bid still
stands, adding it was willing to engage with Teck's board to
improve its proposal structure, but would still make an offer
directly to shareholders if there was no response.
A source close to the matter said that an alternative offer
for Teck's steelmaking coal business might push the Swiss
conglomerate to finally make an improved offer.
Glencore declined to comment.
(Reporting by Divya Rajagopal in Toronto and Sourasis Bose in
Bengaluru
Additional reporting by Clara Denina in London
Editing by Denny Thomas and Matthew Lewis)
