Glencore has launched another bid to take over a Canadian rival by adding a cash sweetener to the deal.
The mining giant wants to merge with Teck Resources and spin-off their combined coal businesses into a new company.
Last week, Vancouver-based Teck rejected Glencore’s £18billion hostile offer to join forces and create a natural resources group valued at £95billion, saying it had no plans to sell the business.
Fresh bid: Mining giant Glencore wants to merge with Canadian rivalTeck Resources and spin-off their combined coal businesses into a new company
Teck also opposed Glencore’s proposal on the grounds the tie-up would increase its exposure to thermal coal and oil trading.
Glencore yesterday wrote to Teck’s board, saying investors would have the option to be paid up to £6.6billion in cash rather than own shares in the spun-off coal business.
The company also reiterated its proposal for the pair to merge their industrial metals businesses with Teck investors to own 24 per cent of the combined group.
Glencore boss Gary Nagle will meet some Teck shareholders tomorrow to push his proposals. Shares in Glencore gained 3.3 per cent, or 14.9p, to 472.25p.
Mining stocks across the sector rose higher, with Antofagasta up 4.8 per cent, or 71.5p, to 1551.5p, Rio Tinto rising 4.9 per cent, or 260p, to 5555p and Anglo American adding 4.2 per cent, or 108.5p, to 2709p.
The London stock market made steady gains as trading resumed after Easter.
The FTSE 100 index rose 0.6 per cent, or 44.16 points, to 7785.72 and the FTSE 250 gained 0.9 per cent, or 159.02 points, to 18956.05.
It was the first trading session after the Easter weekend and added to gains over the previous three weeks as shares continue to recover from the slump last month when fears over the banking system wreaked havoc on global markets.
The FTSE 100 fell as low as 7206 last month having hit an all-time high above 8000 in February.
It has now recovered many of those gains but remains some way below the peak.
Victoria Scholar, head of investment at Interactive Investor, said: ‘After the FTSE 100 logged its third weekly gain last week, the UK index has opened higher.
‘Mining stocks are leading the charge with Glencore, Rio Tinto, and Antofagasta trading towards the top of the FTSE 100.’
Fresh retail industry figures showed sales rose 5.1 per cent year-on-year in March, driven by spending for Mother’s Day gifts.
But Paul Martin, head of retail at auditor KPMG, said the overall sales growth of just 5 per cent last month will have ‘disappointed’ many retailers given inflation is running at more than 10 per cent.
He added: ‘Retailers will be hoping that April prompts consumers to look for some comfort in Easter treats and the sun starts to shine forcing replenishment of summer wardrobes.’
The data out from the British Retail Consortium (BRC) was enough to send Kingfisher up 2.5 per cent, or 6.1p, to 251.8p and B&M added 2.4 per cent, or 11.6p, to 487.3p.
Traders also turned to housebuilders after Barclays said the ‘housing market continues to hold up slightly better than we had feared’.
The broker raised its rating on Persimmon from ‘underweight’ to ‘equal weight’, sending shares up 2.7 per cent, or 33p, to 1266p.
There were also gains for Bellway (up 2.2 per cent, or 48p, to 2216p), Barratt Developments (up 1 per cent, or 4.7p, to 457.7p) and Taylor Wimpey (up 2 per cent, or 2.3p, to 117.35p).
The boss of fund manager JTC said 2022 was arguably its best year since he has been in charge following a strong set of results.
Nigel Le Quesne, who has been in charge for 30 years, made the comments as revenue jumped 35.6 per cent to £200million last year and profit soared 29.3 per cent to £35.9million.
Shares increased by 2.1 per cent, or 15p, to 726.5p.
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