Teck Resources Ltd.’s move to cancel a key shareholder vote on its plan to separate its businesses may be seen as a win for Glencore in its ongoing campaign to acquire the Vancouver-based mining company.

But Teck is standing by its assertion that the offer by the Swiss commodities giant remains a “non-starter,” and Teck CEO Jonathan Price indicated Wednesday the company may be receptive to other suitors.

“We have premium businesses. And when it comes to M&A, we firmly believe that competition for assets drives value,” Price said on a conference call with analysts.

Price said shareholders have made it clear that they still like the idea of a separation, but it needs to be a “simpler and more direct approach.” He declined to elaborate on options the company may be considering.

He also declined to say whether Teck has been approached by any other prospective buyers.

“I won’t speculate in any detail on that,” Price said. “But suffice to say that the process we’ve been through over the last two months, which of course has been a very public one, has seen a significant interest in both businesses, EVR and Teck Metals. And it’s very clear that the value of those businesses is well-recognized.”

Price suggested that additional buyers could come forward once Teck splits its coal assets from its metals business.

“We expect there would be significantly more interest in the businesses on a stand-alone basis,” he said. “And that is one of the reasons we continue to believe that separation is the right path forward here.”

Cole Smead, of Smead Capital Management, said it’s clear that at this point, Glencore has the upper hand.

“I think everyone should have expected this. Frankly, Glencore knows more about the commodity markets than anyone else out there, in my opinion,” Smead said in an interview.

“They’re the kind of people that if you’re gambling, and they’re on the other side of the table from you, you should probably go play a different game.”

https://toronto.citynews.ca/2023/04/26/teck-separation-shareholder-vote-results-to-be-made-public-wednesday/