Shareholders OK merger

Minority shareholders of Cominco (CLT-T) have voted overwhelmingly in favour of the company’s planned merger with parent Teck (TEK-T), and the British Columbia Supreme Court has approved the merger’s plan of arrangement.

Of the votes cast at a meeting to consider the merger plan, 84% were in favour of the merger. Cominco shareholders are getting 1.8 Teck B-series shares and $6 in cash.

Teck is holding its own shareholders meeting in early September, when shareholders will be asked to approve a name change to Teck Cominco and a “coattails” provision requiring any bidder for Teck’s Class A shares (the multiple-voting shares that provide effective control of the company) to bid for B-series shares as well.

A dividend of one B-series share for every A-series share held, to compensate A-series shareholders for the advantage they had held, is part of the measure.

Three outside directors of Cominco, David Sinclair, Lloyd Barber and Hugh Bolton, are joining the Teck board. The merger still requires court approval.