{ "docId": "019f6b8e-feaa-73cb-9603-7345c5140e1c", "docSlug": "jarvis-bluebell-glencore-letter-to-board-april-2023", "documentTitle": "Bluebell Glencore Letter to Board April 2023", "authorId": "bluebell-glencore-letter-to-board-april-2023", "authorName": null, "documentKindSlug": "document", "documentKindLabel": "Document", "sourceTypeSlug": "independent_analyst", "sourceTypeLabel": "Independent analyst", "presentationDate": "2023-04-01 00:00:00", "orientation": null, "aspectRatio": null, "pageNumber": 6, "pageCount": 8, "prevPage": 5, "nextPage": 7, "slideType": "key_messages", "function": "frame_problem", "density": "dense", "nDataPoints": 4, "notes": "This is a page from a formal letter or investor presentation by Bluebell Capital Partners.", "elementsJson": null, "metadataConfidence": 0.9, "imagePath": null, "slideHref": "/slides/019f6b8e-feaa-73cb-9603-7345c5140e1c/6", "deckHref": "/decks/019f6b8e-feaa-73cb-9603-7345c5140e1c", "deckJsonHref": "/decks/019f6b8e-feaa-73cb-9603-7345c5140e1c.json", "deckAnchorHref": "/decks/019f6b8e-feaa-73cb-9603-7345c5140e1c#slide-6", "components": [ { "bbox": { "h": 0.12, "w": 0.68, "x": 0.16, "y": 0.56 }, "kind": "list", "text": "(i) failing to prepare for the Transaction by ignoring our 2021 recommendation to spin-off thermal coal and divest Viterra.\n(ii) acting amateurishly, by proposing a poorly structured transaction which stood no chance of success.", "attrs": null, "subkind": "bullet", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "8b7cd6f8-8fd0-414f-b850-1601b181e5e5", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.05, "w": 0.68, "x": 0.16, "y": 0.69 }, "kind": "paragraph", "text": "In our view, Glencore should have structured the proposed business combination completely differently, by offering:", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "3b28558c-8af1-4e3c-b7bc-d959e89d3cab", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.68, "x": 0.16, "y": 0.1 }, "kind": "paragraph", "text": "The revised offer would also not address Teck’s Board of Directors factual observation that “Glencore consistently lags in value creation” (please also refer to our letter dated November 8th, 2021), as Glencore’s offered to buy Teck Metals in shares and more than half of the claimed 48% value uplift offered to Teck Class B shareholders would come from synergies (5-7%) and re-rating (19%).", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "5754b909-fb7b-4728-a745-5b6cf219b193", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.15, "w": 0.68, "x": 0.16, "y": 0.41 }, "kind": "paragraph", "text": "Bluebell Capital would endorse a business combination intended to create a must-own global base metals company - with a best-in-class portfolio of copper assets, an unrivalled suite of copper growth opportunities as well as being a leading supplier of cobalt, zinc and nickel which is well positioned to meet the demand created by the energy transition - but we censure Glencore’s Board of Directors for:", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "72755326-f9ec-436e-a09e-6fc9b3f7ad98", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.1, "w": 0.68, "x": 0.16, "y": 0.25 }, "kind": "paragraph", "text": "In the end, it is admittedly difficult to propose a deal that satisfies both the shareholders of the target company and those of the buyer and it is equally difficult to propose a deal that will displease them all: Glencore’s Board of directors seems to have succeeded in this remarkable task.", "attrs": null, "subkind": "paragraph", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "acd731ab-b506-413b-82b7-17b04aab5f69", "frameworkName": null, "frameworkSlug": null }, { "bbox": { "h": 0.1, "w": 0.68, "x": 0.16, "y": 0.83 }, "kind": "source-note", "text": "10 https://www.teck.com/media/Teck-Investor-Presentation-April-10.pdf\n11 On top of Bluebell's clear calls to spin off Thermal Coal, at the 2022 AGM Glencore's coal strategy was opposed by shareholders representing 23.7% of the company's capital without the Board of Directors taking any action to address shareholders' growing dissent from less than 6% at the 2021 AGM", "attrs": null, "subkind": "source-note", "toolName": null, "toolSlug": null, "confidence": null, "componentId": "8a971428-70a3-4352-acf3-ff430bbf545b", "frameworkName": null, "frameworkSlug": null } ], "metrics": [], "tools": [ { "name": "Audience Definition", "slug": "audience-definition", "agent": "Storyteller", "layer": "slide", "matchId": "3c3a007b-afdd-4e86-a290-5d88d8c030fe", "evidence": "Bluebell Capital would endorse a business combination intended to create a must-own global base metals company - 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