Teck Resources (NYSE:TECK) stock is on the rise Monday as investors react to news of it rejecting a takeover offer.
The company received an unsolicited takeover offer from Glencore (OTCMKTS:GLNCY). That offer sought to trade shares of TECK stock for shares of Glencore stock. That includes 7.78 shares for each share of Teck Resources’ Class B stock and 12.73 shares for each share of the company’s Class A common stock.
While the offer represented a 20% premium to the price of TECH stock, the mining company’s board of directors is uninterested in it. Specifically, it notes it would expose TECK investors to thermal coal and oil trading, which goes against its environmental, social, and corporate governance (ESG) commitments.
Sheila Murray, Chair of the Board, said the following in a news release:
“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 maximize 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.”
How This Affects TECK Stock Today
Investors are celebrating the news with heavy trading of TECK stock on Monday. As of this writing, more than 4 million shares of the stock have changed hands. That’s already above the company’s daily average trading volume of about 4 million shares.
TECK stock is up 16.3% as of Monday morning.
Investors looking for more of the latest stock market news will want to keep reading!
InvestorPlace is home to all of the hottest stock market coverage traders need to know about on Monday! Among that is what has shares of World Wrestling Entertainment (NYSE:WWE), oil stocks, and Super League Gaming (NASDAQ:SLGG) stock moving today. We’ve got all that ready to go below!
More Monday Stock Market News
- WWE Stock Alert: UFC and WWE Combine in $21 Billion Merger
- Why Are Oil Stocks Up Today?
- Why Is Super League Gaming (SLGG) Stock Down Today?
On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
