Business
Teck Cominco Announces Equity Offering
Teck Cominco Announces Equity Offering.
About this update from Teck Resources Limited Class A
[{"type":"text","content":"\n\n\n\n\n- CONDITIONAL ON ACQUISITION OF INCO-\n\nVANCOUVER, Aug. 15 /CNW/ - Teck Cominco Limited (TSX - TCK.A; TCK.B; NYSE\n- TCK) today announced that it has retained a syndicate of underwriters led by\nBMO Capital Markets, Merrill Lynch Canada Inc., TD Securities Inc. and CIBC\nWorld Markets Inc. to conduct overnight marketing for an offering of not less\nthan C$5.725 billion in Teck Cominco Class B subordinate voting shares.\nClosing of the offering will be conditional on Teck Cominco acquiring not less\nthan 66 2/3% of the shares of Inco Limited (TSX, NYSE - N) (calculated on a\nfully diluted basis), pursuant to an amended offer for Inco.\nUpon successful marketing of the equity offering, Teck Cominco intends to\namend its cash and share offer to acquire all of the outstanding shares of\nInco to provide for consideration with an aggregate value of C$89.00 per Inco\nshare. Inco shareholders will be able to elect to receive either cash or Teck\nCominco Class B subordinate voting shares and C$0.05, in each case subject to\nproration. At full proration, the amended offer for Inco is expected to\nconsist of not less than $71.20 per share, or 80% of total consideration, in\ncash and not more than 20% in Teck Cominco Class B subordinate voting shares.\nThe actual proportions of cash and shares at full proration will depend on the\nnet proceeds of the equity offering. The amended offer will be Teck Cominco's\nbest and final offer for Inco, is expected to expire on or about August 30,\n2006, and will not be further extended unless at least 66 2/3% of Inco shares,\n(calculated on a fully diluted basis) are tendered on or prior to that date.\nThe results of the equity offering are expected to be announced on\nWednesday August 16.\nTeck Cominco has filed a preliminary prospectus in Canada and a\nregistration statement in the United States under the Canadian-U.S.\nmulti-jurisdictional disclosure system in respect of the equity offering. A\nregistration statement relating to these securities has been filed with the\nU.S. Securities and Exchange Commission but has not yet become effective.\nThese securities may not be sold nor may offers to buy be accepted prior to\nthe time the registration becomes effective. This press release shall not\nconstitute an offer to sell or the solicitation of an offer to buy nor shall\nthere be any sale of ...