Teck moves with speed on Cominco takeover borrowing

Teck Corp. has moved quickly to eliminate the short-term bank borro wings it required for the takeover of Cominco. The company will place 1.75 million units in Europe which should net about $60 million from what Teck believes is the “first bought deal of a Canadian equity security for European distribution.”

The units will consist of one Teck Class B subordinate voting share and 1/2 Teck Class B purchase warrant with a unit purchase price of $25. G ordon Capital and Dominion Securities will purchase and distribute 750,000 units at the same price in Canada.

Dr Norman Keevil, president and chief executive officer, told The Northern Miner that the shares would be widely placed although Teck was not the one to decide where they would go. This also applied to the 14.2 million Cominco shares that were sold to the public as part of Teck’s takeover plan. About half those shares were placed in Canada and the rest internationally, he said.

Credit Suisse First Boston purchased the 1.75 million units with warrants having a 2-year term expiring Nov 21, 1988, and will be separated from the Class B shares before Feb 20, 1987. One whole warrant will entitle the holder to purchase one Teck Class B subordinate voting share at $28.50 at any time during the period. Dr Keevil says no decision has been made yet on incorporating the company’s Highmont operation into the Cominco-Lornex agreement for the development of the Valley Copper deposit. Negotiations for the sale of the Con mine at Yellowknife are still under way and there are no plans to change the original Cominco decision to sell the property, he says.