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  "documentTitle": "Glencore Plc (GLEN)",
  "authorId": "23_Bluebell_Capital",
  "authorName": "Giuseppe Bivona and Marco Taricco",
  "documentKindSlug": "shareholder-letter",
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  "presentationDate": "2023-04-12 00:00:00",
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  "notes": "The slide uses a narrative structure to discredit the acquirer (Glencore) by highlighting both financial and ethical/governance failures.",
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      "text": "As a Glencore shareholder, we do not look favourably to a deal where a cheap currency of exchange is used to acquire the target.",
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      "text": "valuation premium: 32%",
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      "text": "Also, whilst Teck has taken all the necessary preparatory steps to realise the full value of its transition metal business, Glencore's ex-coal business trades at a significant discount to its peers, with at least a 20% upside yet to be realised, post the removal of the thermal-coal discount.",
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      "text": "Additionally, the seeming ill health of Glencore's governance is characterized by the many bribery and corruption investigations, in which Glencore has become historically embroiled, something we view as a clear symptom of a pathological company culture.",
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      "text": "Glencore proposed a combination exchange ratio of 7.78 Glencore shares per Teck B share, which represents a valuation premium of 20%, based on Glencore's and Teck B's closing prices as of March 24th, 2023... the proposed Transaction represents a very onerous effective premium of 32% on Teck's undisturbed close price.",
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      "text": "5 we estimate that Glencore is trading at a pure industrial ex Coal EV / EBITDA at 4x vs. 4.8x of Glencore's peers... 6 According to Bluebell analysis, on a SOTP basis, Glencore ex-Coal depressed valuation at 4.0x EBITDA vs diversified peers trading at 4.8x...",
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