Teck Cominco in $14B deal for Fording Coal

Diversified miner firm Teck Cominco Ltd. moved Tuesday to boost its coal reserves, striking a deal to buy Fording Canadian Coal Trust for $14.1 billion in cash and stock.

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Terms of the deal call for Fording Coal trust holders to receive $82 in cash and .245 of a Teck Class B voting share for each unit they own, representing a premium of 18% to the 20-day volume-weighted average price of units trading on the New York Stock Exchange.

Vancouver, British Columbia-based Teck will pay a total of $12.4 billion in cash and 36.9 million of its shares for Fording. The buyer said it expects the transaction to immediately contribute to earnings.

This is the third big coal deal announced in recent weeks. For details on others and more details on this transaction, including advisers, see the full story on TheDeal.com. - Lou Whiteman

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