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Another influential proxy firm said that Teck Resources (NYSE:TECK) shareholders should vote against its plan to to separate its coal and metals operations after ISS made a similar recommendation on Thursday.
Proxy firm Glass Lewis recommended the the no vote ahead of the Teck Resources shareholder vote on a split on April 26, according to a Bloomberg report on Saturday.
The Glencore (OTCPK:GLNCY) acquisition offer for Teck Resources (TECK) represents a compelling alternative that may merit further discussion and there’s no urgency to separate the coal business now, according to Glass Lewis.
The Glass Lewis opinion comes after ISS recommended Teck (TECK) holders should vote against the miner’s separation plan, whose “uncertainties and structural issues” appear to make the proposal a “less compelling outcome compared to the company’s status quo or alternative structures which could be sought,” ISS said.
Teck Resources (TECK) on Thursday also rejected a sweetened acquisition proposal from Glencore (OTCPK:GLNCY). Glencore offered ~$23B to buy Teck (TECK) earlier this month and then revised the bid to include an $8.2B cash component to buy out Teck shareholders.
Bloomberg reported on Friday that Teck Resources’ (TECK) biggest shareholder, China Investment Corp., currently favors Glencore’s (OTCPK:GLCNF) proposal for the coal assets because it would allow for a cleaner exit for investors.