By Adriano Marchese

Shares of Teck Resources Ltd. soared in early trading on Monday after rejecting a proposal by Swiss-based Glencore PLC that would value the company at about 31 billion Canadian dollars, or around US$23 billion.

At 9:41 a.m. ET, Teck's Toronto-listed class B shares were trading nearly 14% higher, at C$56.20.

Glencore proposed an all-share acquisition of the Canadian natural resources company by offering 7.78 Glencore shares for each Teck class B subordinate voting share and 12.73 shares for each Teck class A common share.

Teck said the offer represented a 20% premium for both share classes.

The company board said that the proposal would expose its shareholders to a large thermal-coal business and an oil-trading business which would pose a "significant" jurisdictional risk.

Instead, the company said it would continue to pursue the spinoff of its steelmaking-coal business announced in February, creating two independent companies, Teck Metals Corp. and Elk Valley Resources Ltd., which would focus on base-metals production and steelmaking-coal production, respectively.

Write to Adriano Marchese at adriano.marchese@wsj.com

(END) Dow Jones Newswires

April 03, 2023 10:03 ET (14:03 GMT)

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