LONDON (Reuters) -Glencore has told Teck Resources (NYSE:TECK) shareholders it is willing to improve its $22.5 billion takeover offer, raising the pressure on the Canadian miner to ditch a restructuring plan and sit down at the negotiating table.<\/p>\n\n\n\n
In an open letter on Wednesday, Glencore (OTC:GLNCY) said it would consider taking the offer to Teck’s shareholders directly if the board failed to engage.<\/p>\n\n\n\n
The Swiss miner and trader made its 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.<\/p>\n\n\n\n
The bid is the latest in a wave of mining industry buyout offers fuelled by growing demand for copper and other metals critical to the green energy transition.<\/p>\n\n\n\n
Glencore Chief Executive Gary Nagle flew to Canada to meet shareholders last Thursday after revising its unsolicited bid to include up to $8.2 billion in cash.<\/p>\n\n\n\n
Teck’s board rejected that as too low, adding that it would unnecessarily expose shareholders to a large thermal coal business and an unwanted oil trading unit.<\/p>\n\n\n\n
“Glencore has never stated that its proposal is ‘best and final’ and that it is not willing to make changes and improvement to its proposal,” it said in a statement.<\/p>\n\n\n\n
“With engagement, we could improve our proposal’s terms and value, which would be in the best interests of all Teck shareholders.”<\/p>\n\n\n\n
Glencore’s proposal would combine and spin off its thermal coal unit and Teck’s steelmaking coal business.<\/p>\n\n\n\n
Teck’s management on Tuesday estimated that after its proposed restructuring, shares in the metals business could trade at C$100 ($74.67) or higher, about 55% above the group’s closing price on Tuesday.<\/p>\n\n\n\n
Glencore’s initial bid, made privately, represented a 20% premium to Teck’s March 26 closing price.<\/p>\n\n\n\n
JP Morgan analysts this week said that Glencore could pay as much as $27.2 billion.<\/p>\n\n\n\n
Teck has said it would explore a corporate transaction or partnership after its restructuring. Sources close to the matter said Teck has had approaches from more than six mining companies interested in its prized metals business.<\/p>\n