Teck Resources rejects takeover approach from Glencore, shares surge

Teck Resources surged in pre-market trade on Monday after saying it had received and unanimously rejected an unsolicited takeover approach from Glencore.

The Canadian diversified natural resources group dismissed the approach as "opportunistic".

The offer from Glencore would see Teck separated to create two businesses, which would expose Teck shareholders to thermal coal and oil trading.

Tech chair Sheila Murray said: "The board is not contemplating a sale of the company at this time. We believe that our planned separation creates a greater spectrum of opportunities to maximise value for Teck shareholders.

"The Special Committee and board remain confident that the proposed separation into Teck Metals and Elk Valley Resources (EVR) is in the best interests of Teck and all its stakeholders, is a much more compelling transaction and does not limit our optionality going forward."

Chief executive Jonathan Price said the proposal from Glencore would expose Teck shareholders to a large thermal coal business, an oil trading business and "significant" jurisdictional risk, "all of which would negatively affect the potential of Teck’s business".

At 1245 BST, Teck shares were up 12% in pre-market trade at $40.91.