Canadian mining giant Teck rejects unsolicited takeover offer from Switzerland's Glencore

Canada's Teck Resources Ltd. said on Monday its board has unanimously rejected an unsolicited bid from Swiss commodity firm Glencore Plc, sending its U.S.-listed shares up about 10 per centin premarket trading.

Glencore, in its March 26 offer, proposed an all-share acquisition of Teck and simultaneous demerger of a combined thermal and steelmaking coal businesses.

Financial terms for Glencore's offer have not been revealed but Teckwas valued at US $19 billion prior to the offer.

Teck said the proposal to split would expose its shareholders to a large thermal coal business, an oil trading business and significant jurisdictional risk, all of which would negatively impact its value.

Teck's board said more value can be achieved with the proposed restructuring announced earlier this year than the sale of the company.

"The board is not contemplating a sale of the company at this time," Teck Chair Sheila Murray said.

In February, Teck said it would spin-off its steelmaking coal unit to focus on industrial metals such as copper.

After the separation, Teck will re-brand itself as Teck Metals Corp, while the new divested unit will be listed in Toronto as Elk Valley Resources Ltd.