Yahoo Finance Teck Resources scraps shareholder vote on separating miner into two companies
Investing.com -- U.S.-listed shares in Teck Resources (NYSE:TECK) surged on Wednesday after the Canadian miner announced that it would not be seeking shareholder approval to split the group into two separate businesses.
Vancouver-based Teck had proposed to reorganize the firm into two entities: Teck Metals Corp. and Elk Valley Resources Ltd. But the cancellation of the shareholder vote suggests that Teck may not have had the two-thirds support necessary to secure the move, according to advisers to the company quoted by the Financial Times.
Chief Executive Officer Jonathan Price said a "simpler and more direct separation" will now be pursued, adding that this will be the best way to "unlock the full value" of Teck for shareholders.
The decision keeps Glencore's (LON:GLEN) unsolicited bid for Teck in play. The Swiss mining company had urged investors who are in favor of its offer not to back the separation plan.
Price said the takeover attempt, which Teck's leadership has already rejected, remains a "non-starter."
Shares in Glencore rose in London trading.
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