On February 16, Teck Resources Ltd. (TECK:TSX/NYSE) issued a press release responding to “market rumours” surrounding a potential spinoff of the company’s metallurgical coal business. The response was at the request of The Investment Industry Regulatory Organization of Canada (IIROC) and the New York Stock Exchange (NYSE) which followed a sharp spike in price that drove shares about 10% higher by 10:45am. At this point regulators halted trading on all exchanges and requested information from the company. In a subsequent press release (i.e., the response), the company stated that “no decision has been reached to proceed with a transaction and there can be no assurances that any transaction will eventuate”. Trading resumed at 11:30am and TECK closed higher by 5% on the day.
Follow us on: LinkedIn
By Charles Marleau CIM® and William Mitchell CIM®
By Charles Marleau CIM® and William Mitchell CIM®
