Shares of Canadian miner Teck Resources (TECK.US ) could end up more than 70% higher than they are now once the company completes its spin-off and divests its coal assets, chief executive Jonathan Price said on Tuesday.
He said the market is currently undervaluing the company's base metals portfolio.
Jonathan Price reiterated his view that Glencore's (GLNCY.US) $23 billion takeover bid is neither realistic nor viable for the company's future.
He said the company's proposed split into two companies focused on base metals and coal respectively was the best deal for shareholders.
On March 26, Glencore submitted a takeover proposal to Teck Resources, spinning off the two companies' metals and coal businesses in a deal worth $23 billion.
However, Teck Resources rejected the takeover offer.
Earlier in April, Glencore put forward a new takeover proposal. But Teck rejected the revised takeover bid. Teck said the revised proposal was still not in the best interest of shareholders.
The company will amend the terms of the transaction to fully separate Teck Metals and Elk Valley Resources at the earliest and to maximise free cash flow that can be returned to shareholders.
