Teck Resources Rejects $22.5B Takeover. Stock Soars 19.6%

Mining company Teck Resources (NYSE:TECK)(TSX:TECK.B), which specializes in copper and zinc, turned down an unsolicited $22.5 billion takeover bid from Glencore earlier today. The offer represents a 20% premium to Teck's closing stock price on March 26th, but Teck's board is reluctant to expose its shareholders to thermal coal, oil, LNG, and other related sectors. Under Glencore's proposal, the two companies would spin off their thermal and steelmaking coal businesses and merge their remaining operations to create GlenTeck.

While some analysts believe a higher offer is possible, Teck has rejected the bid outright and is instead focusing on a previously proposed restructuring plan. This plan involves spinning off its steelmaking coal unit to concentrate on copper and other industrial metals, which would result in a new company called Teck Metals Corp. Teck has scheduled a vote for April 26th to decide on whether to approve the proposed restructuring plan.

Following the jump, TECK stock is near 52-week highs.