Teck Resources has been targeted by a hedge fund shareholder that’s pushing the underperforming Canadian miner to divest its energy and coal businesses and consider replacing long-standing CEO Don Lindsay.
Tribeca Investment Partners said making those changes and pivoting to a pure base metals miner would improve Teck’s environmental credentials and could lead to a sixfold share gain over the next year. The company should also scrap its dual-class shares to boost returns, the Australian fund with $1.6-billion in assets said in a letter to the board.
“There’s been a very steady de-rating of the company versus its peers over the last five years and if they continue to do nothing they can only see that continue,” said Tribeca partner Ben Cleary, citing overhauls at Teck rivals Rio Tinto Group and BHP Group as examples of a better way forward.