Teck to Acquire Fording Coal Assets for $14.1 Billion (Update1)
By Stewart Bailey
July 29 (Bloomberg) -- Teck Cominco Ltd., the world's second-largest zinc producer, agreed to pay about $14.1 billion in cash and stock for Fording Canadian Coal Trust to add supplies of coking coal used in making steel.
Fording Canadian investors will receive $82 in cash and 0.245 of a class B Teck share for each unit they hold, Vancouver- based Teck Cominco said today in a statement. Teck said it will issue 36.9 million new shares to fund the purchase, and $9.8 billion of the cash portion will be financed by a group of banks.
The acquisition gives Teck full ownership of the Elk Valley Coal Partnership, which operates mines in British Columbia and Alberta. Teck has been expanding in coal and copper to reduce its reliance on sales of zinc after the metal's price plunged in the past year.
The trust owns 60 percent of the Elk Valley Coal Partnership. Teck owns the remainder of the venture.
To contact the reporter on this story: Stewart Bailey in New York at firstname.lastname@example.org
Last Updated: July 29, 2008 09:18 EDT