Q: Thoughts on merger with Anglo American please. Do i sell into this strength for teck, noting they are minority owners?
Thank you
Thank you
5i Research Answer:
If we consider the special dividend Anglo plans to shareholders prior to closing (which will impact the value of shares received as they will decline post-dividend) the deal is essentially at a 0% premium to TECK shareholders. The market is making the assumption that there will either be another offer or new bidders. Thus, we would hold for now.