I took the liberty of reading over the transcript of Teck's offer for Fording Coal July 29, 2008 to try and draw on Teck's and in particular DL's mindset in acquiring an asset. I found the following interaction between Mr Barnes and DL particularily enlightening, tell me if this is a guy that likes other parties in his kitchen. You would think this sort of mindset favours a 100% buyout over the other 3 back in options. There are a lot of other items in the transcript that I believe are tells on how Teck approaches an acquistion and asset. I can't copy the link but one can get it off the Teck website.
TD Newcrest - Analyst
Is that going to a strategic buyer or is it going straight into the markets and that's it?
Don Lindsay
- Teck Cominco - Presidentand CEO
Well, we will be doing this at a point when the transaction has been approved by Fording unitholders, so it is hard to see the
role for a strategic buyer at that point. We will sell them in the market.
Greg Barnes
- TD Newcrest - Analyst
Other than that a strategic buyer could come in and help you fund the transaction and be a partner with you? Is that a possibility?
Don Lindsay
- Teck Cominco - Presidentand CEO
- TD Newcrest - Analyst
- Teck Cominco - Presidentand CEO
It depends on how you are using the term strategic. It isn't contemplated that an industry player will be involved in this transaction
between now and closing. We do believe that large financial institutions will be keen to participate in the recirculation and buy
as much of our block as they can get their hands on because they will end up earning good return for their capital, which is only
put up for a short period of time.
Greg Barnes
- TD Newcrest - Analyst
Does it make any sense for an industry buyer to come in at all or not?
Don Lindsay
- Teck Cominco - Presidentand CEO
Well, no, because the assets will have been sold.
Greg Barnes
- TD Newcrest - Analyst
Okay, I get it. Thank you.
