Glencore offers $8.2bn cash sweetener in takeover bid for Teck

Glencore has added a cash sweetener to its hostile takeover bid for Teck Resources as it increases pressure on its Canadian rival’s board to reconsider their rejection of the deal.

Under the revised proposal, the FTSE 100 mining group has offered to pay a cash element that could amount to $8.2bn to buy Teck shareholders out of their stake in a coal-focused spin off, while also granting them a 24 per cent stake in a separate industrial metals business that would be created off the back of the deal.

The offer allows investors to choose cash instead of shares in the coal spin-off and the valuation of the total proposal remains the same as the original bid at almost $23bn.

“Glencore acknowledges that certain Teck investors may prefer a full coal exit and others may not desire thermal coal exposure,” it said in a statement.

The revised offer comes just a day after Teck chief executive Jonathan Price told the FT that the deal was a “non-starter”.