MARKET REPORT: Glencore returns with another tilt at rival Teck

Glencore has launched another bid to acquire a Canadian rival by adding a sweetener to the deal.

The mining giant wants to merge with Teck Resources and spin off their combined coal business into a new company.

Last week, Vancouver-based Teck rejected Glencore’s hostile £18bn offer to join forces and create a £95bn natural resources group, saying it had no plans to sell the company.

Teck also opposed Glencore’s proposal because the peg would increase its exposure to thermal coal and oil trading.

Glencore wrote to Teck’s board yesterday saying investors would have the option of receiving up to £6.6bn in cash instead of owning shares in the split-off coal trade.

The company also reiterated its proposal for the pair to merge their industrial metals business with Teck investors to own 24 percent of the combined group.

Glencore boss Gary Nagle will meet with some Teck shareholders tomorrow to push through his proposals. Shares in Glencore gained 3.3 percent, or 14.9 pence, to 472.25 pence.

Mining shares across the industry rose higher, with Antofagasta up 4.8 percent, or 71.5p, to 1551.5p, Rio Tinto up 4.9 percent, or 260p, to 5555p and Anglo American adding 4.2 percent increases, or 108.5p, to 2709p.

The London stock market made steady gains as trading resumed after Easter.

The FTSE 100 index rose 0.6 percent, or 44.16 points, to 7785.72 and the FTSE 250 gained 0.9 percent, or 159.02 points, to 18956.05.

Stock watch – Spectral MD

Shares of Spectral MD hit an all-time high after it agreed to a merger with a Nasdaq-listed Special Purpose Acquisition Company (SPAC).

The Dallas-based healthcare tech company, which has created a tool to predict how and if wounds will heal, rose as high as 67p in early trading on news that it will combine with Rosecliff later this year and delist its shares on AIM.

The deal would value it at $170 million.

Shares rose 42.9 percent, or 12 pence, to 40 pence.

It was the first trading session after the Easter weekend and contributed to gains over the past three weeks as stocks continue to recover from last month’s slump when banking system fears wreaked havoc on global markets.

The FTSE 100 fell to a low of 7206 last month after hitting a record high above 8000 in February.

It has now regained many of those gains, but remains well below the peak.

Victoria Scholar, head of investment at Interactive Investor, said: ‘Following the FTSE 100’s third weekly gain last week, the UK index has opened higher.

“Mining stocks are leading the charge with Glencore, Rio Tinto and Antofagasta trading to the top of the FTSE 100.”

New retail data showed sales rose 5.1 percent year-over-year in March, driven by spending on Mother’s Day gifts.

But Paul Martin, head of retail at accountant KPMG, said overall sales growth of just 5 percent last month will have “disappointed” many retailers as inflation is now over 10 percent.

He added: “Retailers will hope that April will encourage consumers to take some solace in Easter treats and that the sun will begin to shine, prompting summer wardrobe replenishment.”

The British Retail Consortium (BRC) data was enough to send Kingfisher up 2.5 percent or 6.1 pence to 251.8 pence and B&M added 2.4 percent or 11.6 pence to 487.3 pence.

Traders also turned to homebuilders after Barclays said the “housing market is holding up a little better than we feared.”

The broker upgraded its rating on Persimmon from underweight to equal weight, pushing the shares up 2.7 percent, or 33p, to 1266p.

There were also gains for Bellway (+2.2 percent, or 48p, to 2216p), Barratt Developments (up 1 percent, or 4.7p, to 457.7p) and Taylor Wimpey (up 2 percent, or 2, 3p, to 117.35P).

Fund manager JTC’s boss said 2022 may have been the best year since taking charge after strong results.

Nigel Le Quesne, who has been in charge for 30 years, made the comments as sales jumped 35.6 per cent to £200m last year and profits rose 29.3 per cent to £35.9m.

Shares rose 2.1 percent, or 15 pence, to 726.5 pence.