An agreement with Metall Mining (TSE) provides Norman Keevil and his family with a strategy to prevent voting shares of Teck (TSE), of which he is president, from being acquired by any unfriendly shareholder.
Keevil said the agreement was sought because of uncertainty arising from statements of Metallgesellschaft AG regarding the possible disposition of its interest in Metall. Metall’s German parent company is in the midst of a financial crisis caused by ill-fated speculative investments. Teck, a diversified metals and coal producer, holds about 36% of Cominco (TSE). Teck’s major shareholder is Temagami Mining, owned 51% by Keevil Holdings and 49% by Metall. Temagami holds a 39.48% voting interest. Keevil has agreed to place 56,940 of his Teck A shares in a voting trust with 425,000 Teck A shares owned by Metall. He has the right to vote these shares and acquire no fewer than 734,500 Teck A shares owned by Metall, in the event a third party acquires control of Metall.
The proposed voting trust will tighten Keevil’s grip on Teck by increasing the amount of Teck Class A voting shares controlled by Keevil and his family to just under 50%.
Although Keevil said he had no present intention of acquiring further Teck shares, he nevertheless may increase his ownership in the future, “as circumstances warrant.”
It would cost Keevil and his family about $20 million to acquire Metall’s 734,500 Teck A shares. The recent agreement with Metall allows them to bring in a partner of choice as a defensive measure to prevent Teck A shares from falling into unfriendly hands.
But Keevil is keeping his options open, including possible co-operation with Metall’s new owner. “We will wait and see what happens before making any decisions,” he said.\
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