Topic: How To Invest

The Successful Investor Hotline – Thursday, April 6, 2023

Article Excerpt

TECK RESOURCES LTD., $59.27, Toronto symbol TECK.B, remains a buy for investors seeking long-term gains from the Resources sector of their portfolio. The stock jumped over 20% this week after the company rejected an unsolicited takeover offer from Switzerland-based mining firm Glencore plc (Over-the-counter Pink Sheets symbol GLCNF). Glencore proposed to buy Teck for about $23 billion U.S. in stock. The combined firm would then spin off their coal operations as part of a plan to focus on copper production, as well as other minerals such as cobalt, zinc and nickel. A hostile offer seems unlikely, particularly as the Keevil family controls 55% of the Teck’s class A common (100 votes per share) shares. The more widely held class B subordinate voting shares carry one vote per share. Meantime, Teck plans to move ahead with the planned spinoff of its metallurgical coal (a key ingredient in steelmaking) operations as a separate, publicly-traded company called Elk Valley Resources Ltd. (EVR). Investors will receive 0.1 of a..